The effect of technological developments on unemployment and income distribution: panel data analysis

In this study, to measure the effect of technology on unemployment and income distribution, panel data analysis was conducted by taking ICT and education levels data of 14 developed countries for the period 2005-2016. For high technology, ICT data, IT (information technologies), CT (communication technologies), and SOFTWARE (computer software and databases) were evaluated separately. The Gini index is used to express the income distribution. As a result of the tests, it has been found that information technologies have a positive effect on unemployment and income distribution. The test result of communication technologies for unemployment was null; however, the effects on income distribution were negative. It was concluded that computer software and databases affect both unemployment and income distribution negatively. In addition to empirical application, theoretical studies of the effects of technological developments on unemployment and income distribution have been extensively covered. In addition, brief information was given about the Luddite Movement, which emerged as the first reaction to technological developments.