Does Digitalization Widen Income Inequality? A Comparative Assessment for Advanced and Developing Economies

Abstract The paper raises two questions: (1) Does digitalization contribute to wealth and income inequality? (2) it affect inequality differently between advanced developing economies? For the answers, investigates impact of on for a balanced panel dataset economies from 2002 through 2020. It applies system-GMM PMG estimators estimation robustness check. Some exciting results provides. First, narrows in developed widens economies. Second, economic growth – relationship is U-shaped as real GDP per capita increases low (developing economies) high (advanced economies). Third, unemployment enhances groups. note some necessary implications develop digital technology reduce these