Nowcasting income inequality in the context of the Fourth Industrial Revolution

Abstract

The Fourth Industrial Revolution is opening up huge growth prospects for the world economy, while at the same time appearing new or worsening existing problems, one of which is income inequality. The issue of inequality has significant socio-economic and geopolitical importance worldwide since the substantial social and property stratification of the population leads to exacerbation of local, national and even international confrontations in society. This article examines the main technological and socio-economic drivers related to the Fourth Industrial Revolution (Industry 4.0) on income inequality in developed countries (France, Germany, Italy, Spain, UK). Based on recognition of trend and the cyclical component of the dynamics of income inequality and Industry 4.0indicators and using Google search data the authors nowcast the level of Gini coefficient on 15 years ahead.