Internet, Literacy and Earnings Inequality

Alain Trannoy

No 2002023, Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: This paper outlines a theoretical framework to think about the role of NIT on earnings inequality at a domestic level. Two main ideas inspired a growth model. First, to be connected is only meaningful for people who are already literate. Second internet, like the invention of printing, permits to increase the part of knowledge that an individual can use. The results are obtained in terms of the Lorenz criterion. The role of some key parameters is emphasized like the elasticity of substitution between talent and knowledge. Two forces are at work. On the one hand, the gap between literate and non literate people will increase. On the other hand, the incentive to become literate increases. Policy implications are derived.

JEL-codes: D31 D63 O33 (search for similar items in EconPapers)
Pages: 23
Date: 2002-06-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://sites.uclouvain.be/econ/DP/REL/2002023.pdf (application/pdf)

Related works:
Journal Article: Internet, Literacy and Earnings Inequality (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvre:2002023

Access Statistics for this paper

More papers in Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Sebastien SCHILLINGS ().