New technologies and income inequalities into Sub-Saharan Africa: Using a new technological indicator

Abstract

The studies which analyzed the impact of technology innovation on income inequalities have considered only one factor of change at a time. The results are overall inconclusive: technology innovation appears to either reduce or increase inequality, depending on which factor is considered. In the literature of technological change, there is a technology innovation indicator that comprises multiple factors simultaneously. Using this technology innovation indicator and three different measures of income inequality (Gini index, Atkinson index, and the ratio of Palma), the paper analyzed the effect of technology innovation on income inequalities into Sub-Saharan Africa countries. A dynamic panel model was specified and estimated with the Generalized Moments Method (GMM) in System. The data used come from the Global Consumption and Income Project (GCIP), the World Development Indicator (WDI) and the World Governance Indicator (WGI). They were observed over the period 1996–2014 of 30 Sub-Saharan Africa countries. The paper finds robust evidence that technology innovation contributes to reducing income inequalities into Sub-Saharan Africa countries. The implementation of learning policy through improving education condition associated with social policy can contribute to limit the income inequalities due to technologies change into Sub-Saharan Africa countries.