The digitization of society has increased the wage gap between the middle and lower classes in Europe

by time news

2023-08-21 12:21:48

The digitization of society has increased the existing inequalities between the middle class and the lower class in Europe. This is one of the main conclusions of a recent study carried out by a team from the INGENIO Institute, mixed center of the Higher Council for Scientific Research (CSIC) and the Polytechnic University of Valencia (UPV), and the University of Oslo. His conclusions have been published in the journal Industry & Innovation.

In their work, the researchers analyzed a total of 103 European regions using data collected from various sources, such as surveys and regional statistics. And the study concludes that, although in general inequality seems to decrease as the digital skills of the population increase, if analyzed by specific groups, this decrease only occurs among the middle and upper classes.

“When we talk about digitization, we are referring not only to the fact that the population has or has access to equipment such as computers or mobile phones, but to a set of broader changes, due to the consolidation of the digital paradigm, which entails a new way of understanding the system of production and distribution of goods and services using digital technologies and skills”, explains David Consolia researcher at the INGENIO Institute and one of the authors of the paper, along with Fulvio Castellacci and Artur Santoalha, from the University of Oslo.

When we talk about digitization, we are referring not only to the fact that the population has or has access to equipment such as computers or mobile phones, but to a broader set of changes

Davide Consoli, investigator of the INGENIO Institute

Starting from this premise, the study confirms that digitization has redistributive effects along the spectrum of labor income and, therefore, between social classes. “If we consider the entire spectrum, upper, middle and lower class, the average effect is less inequality. However, if we analyze different sections separately, we observe two different effects: a decrease in inequality between the middle and upper classes and, on the other hand, an increase in inequality between the middle and lower classes”, adds Davide Consoli.

To reverse this situation, this work stresses the importance of investing in education and training in digital skills to reduce the gap both between citizens and between regions, thus promoting more equitable economic growth in Europe.

“Although in Europe the acquisition of digital skills and digitization of society has not stopped growing over time, a closer examination of the statistics reveals these important differences both between and within regions. In turn, large disparities in ‘digital literacy’, i.e. the ability to use digital platforms at work or in everyday life, risk further even bigger gaps on the key priorities of the European Commission, namely social cohesion, security and economic growth. Hence the importance of a firm commitment to training in digital skills that reaches all levels of the population”, explains Consoli.

The Scandinavian regions, the example

Of the 103 European regions analysed, the example to follow, according to the results of the study by INGENIO researchers and the University of Oslo, is Scandinavia. The countries in this area of ​​Europe are the ones with the most digital skills and do so in a practically homogeneous way. “On the other hand, in the other countries, digital skills tend to be more concentrated in the regions of the state capitals, London, Madrid, Athens, Rome, etc. Thus, in most European countries the digital gap between large cities and smaller municipalities is also very high”, points out Consoli.

In the other countries, digital skills tend to be more concentrated in the regions of the state capitals

David Consoli

For the authors of the study, the conclusions drawn from it have two clear implications: firstly, they point out that it is increasingly important to keep health plans as up-to-date as possible. training for less skilled workerss, “with the aim that citizens with fewer resources are not left behind.” Secondly, he reaffirms the need to implement systemic policies that support the advance of digitization taking into account, and as far as possible, anticipating the socio-economic effects.

Reference:

Davide Consoli, Fulvio Castellacci & Artur Santoalha (2023). “E-skills and income inequality within European regions”, Industry and Innovation.

Fuente:

CSIC Valencian Community

Rights: Creative Commons.

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