Morganti, Paolo Riccardo
Thumbnail Image
Preferred name
Morganti, Paolo Riccardo
Official Name
Morganti, Paolo Riccardo
Alternative Name
pmorganti
Main Affiliation
ORCID
Scopus Author ID
57417762600
Researcher ID
GOP-3460-2022

Research Output

Filters

1
1
Reset filters

Settings
Now showing 1 - 1 of 1
No Thumbnail Available
Publication

The Perils of Asymmetrical Technological Changes in a Knowledge Economy with Complete Markets

2023 , Morganti, Paolo Riccardo , Valdés, Rosa Carolina

How does the asymmetrical adoption of advanced communication technology affect economic and social sustainability? We examined the impact of Industry 4.0 on these two pillars of sustainability, focusing on the productivity divide arising from the asymmetric adoption of advanced technologies. We used a theoretical, general equilibrium model to describe a population within a knowledge economy with complete markets who gets exposed to a generally available advanced technology. Our main assumption was that only the more-knowledgeable individuals are able to adopt or fully benefit from the technology, leaving the unskilled ones behind. We demonstrate that this asymmetry prevents the property of positive sorting to apply, leading to a failure to sustain an equilibrium. The divide between knowledgeable and less-skilled individuals poses challenges for workers situated around the boundary, who face penalties in terms of employability and cost-effectiveness. Bridging this skill gap is crucial for inclusive growth. Policy recommendations include retraining programs, accessible education, and targeted policies promoting technology diffusion. As a possible extension, the model could be adapted to analyze collective bargaining agreements.

View