Open AccessTechnological Progress and Future of Kuznets Curve
Author(s) -
Inyong Shin,
Hyunho Kim,
Eiji Yamamura
Publication year - 2018
Publication title -
research in economics and management
Language(s) - English
Resource type - Journals
eISSN - 2470-4407
pISSN - 2470-4393
DOI - 10.22158/rem.v3n1p8
Subject(s) - kuznets curve , economics , technological change , inequality , degree (music) , econometrics , economic inequality , demographic economics , macroeconomics , mathematics , physics , mathematical analysis , acoustics
This study considers the fluctuation in the degree of income inequality after the Kuznets curve completes a single inverted U-shaped curve. It ascertains that new-born technological inventions increase the degree of inequality; however, the degree of inequality declines as the technology disperses into the overall economy using OECD members’ data. Assuming that technological progress takes place repetitively throughout long term economic growth, the Kuznets curve does not converge to a single inverted U-shaped curve. Rather, it fluctuates through technological progress where technology appears as an invention, but with time it becomes common knowledge.