THE IMPACT OF TECHNOLOGICAL ADVANCEMENTS ON INCOME INEQUALITY

ABSTRACT Technological progress has completely reshaped the global economy—boosting productivity, sparking innovation, and creating new industries. However, this rapid advancement has also deepened the gap between high-skilled and low-skilled workers. While highly educated workers benefit from better jobs and rising wages, many low-skilled workers face stagnant incomes and the threat of job loss due to automation and AI. This paper explores real-world data to show how technology is affecting income distribution across industries and regions. It highlights the urgent need for policy actions—such as investing in education and upskilling, strengthening social safety nets, pushing for inclusive growth, and reforming tax systems. With smart policymaking, governments can ensure that the benefits of technology are shared fairly and that no group is left behind in the digital age. Keywords: technological progress, income inequality, automation, artificial intelligence, digitalization, skills development, social safety nets, inclusive growth, taxation policies.