The relationship between digitalization, employment and poverty: Empirical findings by country income groups

Technological progress and its relationship with poverty have long been central topics in economics, particularly in the context of growth, income level, and differences between developed countries and developing countries. This study investigates the empirical relationships between technological indicators, poverty, and economic growth for the years 2015 and 2020, considering countries grouped by income level. By focusing on technological progress and its interaction with socioeconomic variables, the research aims to better understand how development disparities emerge. For 2015, the analysis includes variables such as individuals using the Internet, R&D expenditures, researchers in R&D, trade growth, GDP growth, NEET rates, employment-to-population ratios, and poverty headcount ratios. In 2020, all variables except researchers in R&D are considered. The sample consists of 34 countries in 2015 and 47 countries in 2020, categorized into four income groups ranging from low-income developing countries to high-income developed countries. Using data from the World Bank's World Development Indicators, the study applies correlation analysis to explore relationships among variables, one-way ANOVA to test differences across income levels, and discriminant analysis to identify key distinguishing factors between groups. The findings reveal that technological progress, especially Internet usage and R&D investment, plays a critical role in differentiating countries by income level. At the same time, poverty and employment structures remain essential components shaping these differences. The results highlight that while technological advancement contributes to growth and poverty reduction, its effectiveness depends on supporting factors such as human capital and institutional quality. In both developing countries and developed countries, unequal access to technology and differences in social structure significantly influence development outcomes. Therefore, sustainable poverty reduction requires not only technological progress but also inclusive policies that strengthen education, employment, and institutional capacity across different income levels.