Increased Wage Inequality via ICTs

Abstract

Globalisation and technological advances have affected workers' livelihoods. This study analysed how capital investment in ICTs at the workplace affected marginalised low wage workers in a large sample of firms (n=632) in Singapore. We found that social investment by the state for ICTs investments in workplaces led to a significant negative, albeit marginal, reduction in wage growth. We argue that these findings are supported by economic theory, and propose that government investment balance towards higher-order digital skills. We advocate for further research to measure the impact of worker ownership in enterprises on productivity growth, and hence equality objectives.

ICTs for employability and empowerment : an analytical framework for addressing the digital divide in urban livelihoods

“…Specifically, Webster (2007) postulated that the advent of Information Communication Technologies (ICTs) was a key contributing factor to workers' job anxieties. In terms of the impact on income inequality, Loh and Chib (2016) found that a higher use of ICTs, in the workplace, did not correspond to higher wages for its employees. In fact, the opposite happened -ICT use at work was associated with declining wages for its workers (Loh & Chib, 2016).…”

“…In terms of the impact on income inequality, Loh and Chib (2016) found that a higher use of ICTs, in the workplace, did not correspond to higher wages for its employees. In fact, the opposite happened -ICT use at work was associated with declining wages for its workers (Loh & Chib, 2016).…”