DIGITALIZATION IMPACT ON ECONOMIC INEQUALITY

Abstract

Digitalization is a powerful factor in the transformation of the modern economy, opening new opportunities for entrepreneurship, employment, and financial instruments. It reshapes the labor market, simplifies access to information and services, and enhances business process efficiency. However, digital transformation is also accompanied by risks of increasing economic inequality due to unequal access to digital technologies, market concentration in the hands of large corporations, and changing qualification requirements for workers. The purpose of this study is to determine the impact of digitalization on economic inequality and analyze possible mechanisms for minimizing the negative consequences of digital transformation. The author explores how the development of digital infrastructure, the level of digital literacy among the population, and government policies can influence the economic divide between social groups and regions. The methodological foundation of the research includes general scientific methods such as analysis, synthesis, induction, deduction, and comparison, which allowed the systematization of scientific approaches to defining the impact of digitalization on economic inequality. The research findings indicate that digitalization can both contribute to reducing economic inequality and exacerbate it. One of the positive aspects is the expansion of access to educational resources, enabling individuals to acquire knowledge and professional skills regardless of their place of residence. Additionally, digital platforms create new opportunities for employment and self-employment, allowing economically active populations to generate additional income. At the same time, automation and artificial intelligence can reduce traditional jobs, leading to increased unemployment among unskilled workers.The practical significance of the study lies in formulating recommendations for reducing the economic gap through the effective use of digital technologies. In particular, measures are proposed to develop digital literacy, support small and medium-sized enterprises, regulate the activities of large technology corporations, and ensure equal access to digital infrastructure. The study highlights the need for a comprehensive approach to digital transformation that minimizes its risks and promotes the creation of an inclusive economic model. Thus, the results of this work may be useful in shaping government digital development policies and implementing measures aimed at overcoming economic inequality in the digital era.