Publication
Mitigating technology gaps' contribution to international income inequality
income inequality
innovation measurement
international technology gap
patents
R&D
replication study
2026
2026, Economic Inquiry, 64(1), pp.131-166
Abstract
This replication study revisits a 2023 analysis by Sampson on the impact of international technology gaps on income inequality, trade, and wages. We extend the original framework by using broader patent metrics from PATSTAT, expanding the country sample and time frame, and testing alternative calibrations. Our results confirm that cross-country differences in innovation efficiency contribute significantly to wage and income disparities. However, the strength of this relationship varies with country composition and the choice of innovation measure. Broader patent indicators yield weaker inequality effects, highlighting the importance of measurement choices in assessing technology's role in global income distribution.