The Relationship between Frontier Technology Adoption, Income Inequality, and Labor Market Participation in African Countries: A Comparative Analysis

Abstract

This paper examines the intricate relationship between frontier technology adoption, income inequality, and labor market participation in African countries. As technological innovations, particularly in green sectors, promise significant economic growth and productivity enhancements, they also raise critical concerns regarding their equitable distribution across different socioeconomic groups. Utilizing a panel dataset of 32 African nations from 2010 to 2020, the study analyzes how the adoption of frontier technologies influences labor market dynamics, particularly focusing on male and female labor force participation rates. The findings reveal a dual nature of technological advancements: while they can create new job opportunities and improve workforce engagement, their benefits are often mitigated by existing income disparities. The research highlights a non-linear relationship between income inequality and labor market outcomes, suggesting that higher inequality can exacerbate challenges in achieving inclusive growth. The paper concludes with policy recommendations aimed at fostering inclusive economic strategies that ensure the benefits of technological innovations are accessible to all, thereby promoting sustainable development and reducing poverty and inequality across the continent.

Presenters

Amos Kweku Abekah
Student, MSc. Economics, Friedrich-Schiller-University, Jena, ThĂĽringen, Germany

Details

Presentation Type

Paper Presentation in a Themed Session

Theme

2025 Special Focus—Sustainable Development for a Dynamic Planet: Lessons, Priorities, and Solutions

KEYWORDS

Keywords: Africa; Innovation; Economic freedom; Female economic inclusion, Male economic