<p>This study investigates the long-term socio-economic effects of ICT-driven technological change and examines how upgrading workers’ skills through continuous learning can reshape overall economic trajectories. To this end, we propose a computable general equilibrium model capable of simulating the long-term effects of policy interventions aimed at promoting workers’ skill accumulation and adaptability. Based on the quantitative analysis, this study explores how dynamic interactions between technological progress and workforce competencies influence overall economic systems, focusing on the Korean economy. Our analysis shows that strategic investments in both ICT and education not only lead to higher overall economic growth, but also mitigate ICT-induced inequality by expanding the supply of high-skilled workers and moderately improving the mid-level skill premium through overall industrial growth. This approach suggests that integrated investment strategies can reduce skill gaps, alleviate labor market polarization, and promote more balanced and inclusive economic development, providing valuable insights for policy formulation in the era of technological progress.</p>

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Bridging the Digital Divide: A CGE Analysis of Enhancing Worker Adaptability to Address ICT-Induced Inequality

  • Yeongjun Yeo

摘要

This study investigates the long-term socio-economic effects of ICT-driven technological change and examines how upgrading workers’ skills through continuous learning can reshape overall economic trajectories. To this end, we propose a computable general equilibrium model capable of simulating the long-term effects of policy interventions aimed at promoting workers’ skill accumulation and adaptability. Based on the quantitative analysis, this study explores how dynamic interactions between technological progress and workforce competencies influence overall economic systems, focusing on the Korean economy. Our analysis shows that strategic investments in both ICT and education not only lead to higher overall economic growth, but also mitigate ICT-induced inequality by expanding the supply of high-skilled workers and moderately improving the mid-level skill premium through overall industrial growth. This approach suggests that integrated investment strategies can reduce skill gaps, alleviate labor market polarization, and promote more balanced and inclusive economic development, providing valuable insights for policy formulation in the era of technological progress.