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The Effects of High-Tech Specialization on Intra-Regional Changesin Income and Poverty

Kim, Chanyong 1 Jae Won Kim 1 Up Lim 1

1연세대학교

Accredited

ABSTRACT

This study aims to examine the effects of high-tech industries on dynamic changes in regional income and poverty using a regional-level data from the Local Area Labour Force Survey from 2010 to 2015. High-tech industries often considered as a potent driver of complex inequality by class and gender. Thus, this study empirically analyzes the role of high-tech industries on the wage growth of workers with high- and low-levels of educational attainment and changes in poverty rate. The empirical analysis is based on the regional-level data from the Local Area Labour Force Survey. Results show that the benefits from the specialization of high-tech manufacturing industries are insufficient to increase the wage earnings of the disadvantaged labor groups and reduce the poverty rate. On the other hand, a high proportion of employees in high-tech service industries positively affects the wages of low-skilled workers and poverty reduction. This study presents challenges for policymakers who are interested in linking local economic growth with disadvantaged groups.

Citation status

* References for papers published after 2022 are currently being built.

This paper was written with support from the National Research Foundation of Korea.