Abstract:

Developments in information technologies and globalization have led to the formation of new economic structures in the developed economies called the new network economy or knowledge-based economy. The knowledge economy has become so important that it is thought by most economists that it is more important than traditional production factors such as labor and capital. Therefore, the definition of components of knowledge economy and its effect on macroeconomic variables have been the subject of many researches. Since the income distribution is considered as an important indicator that shows how the revenue generated in a country is shared among its population, it is aimed to reveal the impact of the knowledge economy on income distribution. This study investigates the effect of knowledge economy on income inequality through static panel data analysis for 18 OECD countries between the periods 2004-2014. Information and communication technologies are included as information economy parameters. The coefficients obtained for the indicators of knowledge economy are negative and statistically significant. This suggests that the progress made in education levels and information and communication technologies in OECD countries has a reducing effect on income inequalities.

Keywords: