ABSTRACT
The aim of this chapter is to explore the impact of the digital economy on labour market dualism and to assess how technological progress towards a knowledge-based economy leads to more and better jobs. The chapter addresses the question: what determines developments in the labour market in the age of digital transformation? The chapter indicates that the transition to the digital economy is a complex process that causes changes in all areas of economic activity. Successful adaptation to the digital economy depends on a number of factors, including labour market flexibility and an institutional framework that provides employees with the skills upgrading or retraining they need to change jobs. This chapter points out that workers in the digital economy need to be highly skilled, flexible and adaptable. These characteristics are crucial for successful adaptation and thus for reducing labour market inequalities in the long term.
