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Internet, Literacy and Earnings Inequality

Published online by Cambridge University Press:  17 August 2016

Alain Trannoy
Alain Trannoy*
Affiliation:
THEMA, Université de Cergy-Pontoise
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Summary

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.

Résumé

Résumé

Cet article présente un cadre théorique pour analyser le rôle des Nouvelles Technologies d’Information (NTI) sur l’inégalité des revenus au niveau domestique. Deux idées majeures inspirent ce modèle de croissance: premièrement, la connection à l’internet n’a de sens que pour des gens qui savent l’utiliser; deuxièment, tout comme l’invention de l’imprimerie, l’internet permet à un individu d’accroître son niveau de connaissance. Les résultats que l’on obtient sont mesurés à partir du critère de Lorenz. Le rôle de quelques paramètres-clé, tels que l’élasticité de substitution entre le talent et la connaissance, est plus particulièrement mis en valeur. Deux forces sont à l’oeuvre: d’une part, l’écart de revenus entre les personnes qui savent utiliser les NTI et les autres se creuse; d’autre part, l’incitation à l’apprentissage aux NTI s’accroît. Nous en tirons quelques conclusions sur les politiques à conduire.

Keywords

D31D63I2O33InégalitéInternetNiveau d’instructionRevenusCroissance endogèneD31D63I2O33
Type
II. Labor Economics and Human Capital Investments
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 68 , Special Issue 1-2: The New Economy: Implications and Viability , 2002 , pp. 125 - 149
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 2002 

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Footnotes

*

[email protected]

I thank Arnaud Lefranc, Etienne Wassmer and participants of the conference on the New Economy in Metz in April 2001 for their comments as well as participants in a seminar in Nottingham. The financial support of the European Commission through the Contract ERBFMRXCT980248 is grateful acknowledged. The usual caveat applies.

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