Role of ICT and Wage Inequality in Organization

This study deals with wage inequality in organization
and shows the relationship between ICT and wage in organization.
To do so, we incorporate ICT’s factors in organization into our
model. ICT’s factors are efficiencies of Enterprise Resource
Planning (ERP), Computer Assisted Design/Computer Assisted
Manufacturing (CAD/CAM), and NETWORK. The improvement of
ICT’s factors decrease the learning cost to solve problem pertaining
to the hierarchy in organization. The improvement of NETWORK
increases the wage inequality within workers and decreases within
managers and entrepreneurs. The improvements of CAD/CAM and
ERP increases the wage inequality within all agent, and partially
increase it between the agents in hierarchy.

Authors:

• Shoji Katagiri

Keywords:

• Endogenous economic growth
• ICT
• inequality
• capital accumulation
• technology.

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