How technological change has driven inequality in modern economies.

Technological progress has driven sustained productivity growth in modern economies, yet it has also coincided with rising income inequality. This thesis examines why technological change has increased inequality despite improvements in aggregate productivity. Drawing on the literature on skill-biased and task-biased technological change, it argues that recent innovations - particularly automation and digital technologies - have disproportionately benefited high-skilled workers and capital owners while displacing tasks performed by middle and low-skilled workers. These dynamics have contributed to job polarization, wage stagnation for large segments of the workforce, and a growing disconnect between productivity and median wages. By synthesizing theoretical and empirical evidence, the thesis highlights how changes in the task composition of production reshape labor demand and income distribution, underscoring the need for complementary policies to promote more inclusive growth.