Social and Economic Consequences of Large-scale Digitization and Robotization of the Modern Economy

Askar Akaev, Andrey Rudskoy () and Tessaleno Devezas ()
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Askar Akaev: Institute for Mathematical Research of Complex Systems, M.U. Lomonosov Moscow State University
Andrey Rudskoy: Saint Peterburg Peter the Great Polytechnic University
Tessaleno Devezas: Atlantica—Instituto Universitário

A chapter in The Economics of Digital Transformation, 2021, pp 5-23 from Springer

Abstract: Abstract The authors analyze the trends in the development of modern capitalist economies such as the growth of capital share in the national income (GDP) and corresponding decrease in the share of labor; lower wages and the reduction of employment; steady growth of income inequality and polarization of labor. The models for the dynamics of employment and income are developed considering the acceleration of technological replacement of jobs. Models for the distribution of the household annual income in the USA based on the exponential law, Rayleigh distribution law, and power-law distribution are discussed in the work. The forecasted distribution curves of the annual household income of the middle class, including the poor, and of the rich families in the USA are built for 2030 and 2050 and compared with the corresponding data for 2017. They reflect the forecasted growth of income polarization: there are practically no families with income ranging from 300 thousand dollars to 600 thousand dollars per year. This indicates the gradual disappearance of the middle class which is the basis of democracy and stability.

Keywords: Technological replacement of workplaces; Polarization of labor and income; NBIC technologies (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:seschp:978-3-030-59959-1_2

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DOI: 10.1007/978-3-030-59959-1_2

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