Technological Changes and Social Risks

Abstract

Technology has propelled mankind’s progress across history, while at times threatening the survival of humanity. This article examines the social risks that technological changes pose to six areas—poverty/inequality, employment, housing/regional affairs, health/life expectancy, care/work-family balance, and public finance—and explores how these risks may come about in varying ways across the spectrum of technological innovations. In the first place, technological changes may affect income inequality, but the extent to which they do so depends on institutional conditions. Regarding employment, the predominant view is that technological advancement is unlikely to lead to a decline in total employment. Advances in health care technologies may have both positive and negative effects on health outcomes. Adopting technologies could facilitate flex-time and telecommuting, contributing to better work-family balance, but it has also been reported to have downsides, such as blurring the demarcation lines between work and home life. The recent digital transition has led to the emergence of “third-generation” social risks, including cyber risks—such as personal information breaches and hacking—and the issue of global digital workers remaining excluded from institutional protection.