Abstract:

Since the 1980s, the income distribution in Western developed countries has deteriorated again. From the perspective of technological progress among many possible reasons, this paper provides theoretical and empirical explanations for the emergence of the new inflection point of the “Kuznets curve". We find that technological progress will first enable enterprises to obtain higher added value through improving the productivity level. If more of the higher added value flows to the high–income group, the income gap will be widened. In addition, technological progress will reduce the demand for labor in enterprises, and shift labor from manufacturing to low-skill and low-wage services, thus widening the income gap. To some extent, China also seems to be experiencing a re-deterioration of income distribution in its underdevelopment. Therefore, this paper discusses how to solve the contradiction between technological progress and common prosperity.

Key words:

"Kuznets curve" new inflection point, technological progress, evolution of industrial structure

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