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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 NITon earnings inequality at a domestic level. Two main ideas inspired a growthmodel. First, to be connected is only meaningful for people who are alreadyliterate. Second internet, like the invention of printing, permits toincrease the part of knowledge that an individual can use. The results areobtained in terms of the Lorenz criterion. The role of some key parametersis emphasized like the elasticity of substitution between talent andknowledge. Two forces are at work. On the one hand, the gap between literateand non literate people will increase. On the other hand, the incentive tobecome literate increases. Policy implications are derived.

Résumé

Résumé

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

Keywords

D31D63I2O33InégalitéInternetNiveau d’instructionRevenusCroissance endogèneD31D63I2O33

Information

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

*

trannoy@u-cergy.fr

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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