| Issue |
SHS Web of Conf.
Volume 44, 2018
IV International Scientific Conference “The Convergence of Digital and Physical Worlds: Technological, Economic and Social Challenges” (CC-TESC2018)
|
|
|---|---|---|
| Article Number | 00039 | |
| Number of page(s) | 6 | |
| DOI | https://doi.org/10.1051/shsconf/20184400039 | |
| Published online | 05 June 2018 | |
Technological development and income inequality: a role of financial marketa
1 National Research University Higher School of Economics, 194100 Kantemirovskaya st. 3, Russian Federation
2 LETI University, Proffesor Popov st. 5, Russian Federation
3 University of Applied Science Wildau, 15745, Hochschulring 1, Germany
4 Peter the Great St.Petersburg Polytechnic University, 195251 Polytechnicheskaya st. 29, Russian Federation
* Corresponding author: yichkitidze@hse.ru
In this paper we study the effects of financial markets on an increase in income inequity. The notion, which is employed as a working hypothesis that the market equilibrium around the fair price and unbiased changes in prices has a neutral effect on inequity while the systematic underreaction accompanied by time trends contributes to its growth, has been considered. In order to check this hypothesis we have studied the long-term cycles in dynamics of the US stock index and income inequity and shown that the stock market growth observed in 1980-2017 is correlated to an increase in income inequity. The presence of causality in this relationship has been found through the evidence of systematic underreaction given by the share prices of fast-growing companies to the information about the diffusion of technological innovations. The research results prove that the free financial markets with technological development in progress contribute to instability, as they while enhancing income inequality increase the unemployment growth risks and require additional efforts from the state to redistribute income.
© The Authors, published by EDP Sciences, 2018
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (http://creativecommons.org/licenses/by/4.0/).
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