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Published in:
2021 | OriginalPaper | Chapter
Social and Economic Consequences of Large-scale Digitization and Robotization of the Modern Economy
Authors : Askar Akaev, Andrey Rudskoy, Tessaleno Devezas
Published in: The Economics of Digital Transformation
Publisher: Springer International Publishing
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Abstract
The authors analyze the trends in the development of modern capitalist economies such as the growth of capital share in the national income (GDP) and corresponding decrease in the share of labor; lower wages and the reduction of employment; steady growth of income inequality and polarization of labor.
The models for the dynamics of employment and income are developed considering the acceleration of technological replacement of jobs. Models for the distribution of the household annual income in the USA based on the exponential law, Rayleigh distribution law, and power-law distribution are discussed in the work. The forecasted distribution curves of the annual household income of the middle class, including the poor, and of the rich families in the USA are built for 2030 and 2050 and compared with the corresponding data for 2017. They reflect the forecasted growth of income polarization: there are practically no families with income ranging from 300 thousand dollars to 600 thousand dollars per year. This indicates the gradual disappearance of the middle class which is the basis of democracy and stability.