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Digital globalization of the labor market as a factor of deepening inequality

Vol. 20, Iss. 8, AUGUST 2024

Received: 25 January 2024

Received in revised form: 18 March 2024

Accepted: 29 April 2024

Available online: 15 August 2024

Subject Heading: CHALLENGES OF GLOBALIZATION AND ITS CONSEQUENCES

JEL Classification: E24, F22, F66, J60

Pages: 1583-1600

https://doi.org/10.24891/ni.20.8.1583

Ol’ga N. BUCHINSKAYA Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation
GTO2000@list.ru

https://orcid.org/0000-0002-5421-2522

Subject. The article deals with development of information and communication technologies, the modern world labor market.
Objectives. The focus is no examining the impact of new categories of workers (telemigrants and digital nomads) on the level of income inequality in countries of residence and host countries.
Methods. The study employs methods of statistical and graphical analysis.
Results. Telemigrants and digital nomads have different effects on the labor market in host countries. The use of telemigrants leads to a decrease in the level of wages and social protection of workers in the host countries. At the same time, an increase in the level of income of telemigrants is expected only in the short term, and in the long term, wages may decrease to the level prevailing in the host country of the telemigrant. Digital nomads do not have a significant impact on the labor market of the host country and have a negligible impact on the level of inequality in the country of residence. At the global level, the impact of the unidirectional flow of digital nomads to developed countries exacerbates inter-country inequalities.
Conclusions. Digitalization of the global labor market leads to increased inequality both between countries and within developed countries. It enables employers to significantly reduce costs by attracting cheap labor from abroad and reducing the level of social protection of workers.

Keywords: globotics, digital inequality, telemigrants, digital nomad, brain drain

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