Impact of Employment Concentration in High-tech Industries on Income Inequality

In this study, we investigated the relationship between income inequality and high-tech employment in developed and developing nations using time-series and cross-sectional data from various sources. Our empirical analysis revealed a negative relationship between high-tech employment share and income inequality, with varying impacts across manufacturing and non-manufacturing sectors. Additionally, utilizing a hierarchical clustering algorithm, we categorized sample countries into two groups based on five parameters representing different levels of economic development. Our empirical findings reveal that the impact of high-tech industry concentration on income inequality is not significant in emerging economies. However, in advanced economies, the observed pattern remains consistent with that found in the overall sample.