When considering the effect of digitalisation on inequality, researchers usually focus on income inequality. This column compares the consumption baskets of US households to study the effect of digitalisation on consumption inequality. High-income households have a higher share of ICT-intensive products in their consumption, and thus benefit more from price declines in these goods due to digitalisation. The price channel accounts for 22.5% of the increase in consumption inequality between 1960 and 2017.
|Publication date||21 Jan 2022|
|Place of Publication||London|
|Publisher||Centre for Economic Policy Research|
|Publication status||Published - 21 Jan 2022|