News banner image

News

Technology Helped Reducing Inequality Gap

A study realized by scholars at the universities of Chicago, Maryland and the Hoover Institution demonstrated that technology is helping reduce inequality in the world. Bary S. Bercker, Tomas J. Philopson, and Rodrigo R. Soares compared “the welfare value of gains in life expectancy with gains in income” to get the “effect of life expectancy on the evolution of world inequality.”

As a result, health and income have increase by 40% in third world countries. According to Berker, Philopson and Soares findings, “results indicate reduction in welfare inequality: poorer countries gained proportionally more than rich countries.”

In the 1960s, life expectancy in Latin America and the Caribbean was 56 years. Today, thanks to new vaccines, medicines, hospital equipment, mortality rates have dropped tremendously and people live longer and in better conditions than back then. Life expectancy has raised to 70 years.

Living conditions in general have improved thanks to technology innovations, now more people have access to electricity, drinking water, public services, and education. . This means that “the effects of health are sufficient to reverse the results regarding the evolution of cross-country inequality up to the 1990's.”

Before 1990 mortality at early ages was caused by infectious, respiratory, and digestive diseases. Children died not only because they were poor and their parents did not have enough money to take them to good health care centers, but also because in their countries hospitals did not have the medicines or with equipment to treat them.

At the present, countries offer their citizens better health services. Standards of living have also increase allowing poor people better services, decreasing mortality rates and improving.