High education and high technology coexist with stagnant low wages.
Economic and technological research indicates that skill-biased technological change and advanced automation frequently widen income gaps, allowing high-skill and high-technology sectors to thrive while lower-wage earners experience stagnant compensation.
The claim connects high education, high technology, and stagnant low wages. Papers 4 and 5 directly discuss how technological change (such as skill-biased technological change and automation) widens wage disparities and creates job polarization or widening wage gaps for lower-skilled workers. The coexistence of advanced technology/education demands and wage inequality or stagnation is well-supported by this literature.
Manuel Carlos Nogueira, Mara Madaleno. New Evidence about Skill-Biased Technological Change and Gender Wage Inequality. 2023. https://doi.org/10.3390/economies11070193
The paper demonstrates that advanced technology investment widens the wage gap between higher- and lower-skilled workers, consistent with stagnant or lagging outcomes for lower-wage earners alongside high technology.
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Merola R. Inclusive Growth in the Era of Automation and AI: How Can Taxation Help?. 2022. https://doi.org/10.3389/frai.2022.867832
The study highlights that the rise of automation and AI threatens to widen income disparities and cause job polarization, illustrating how technological advancement can coexist with disadvantaged lower-wage conditions.
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