Internet Adoption Patterns and Usage are Different: Implications for the Digital Divide
2008, Information Economics and Policy
Jeff Prince, Avi Goldfarb
There is a well-documented a "digital divide" in internet connection. We ask whether a similar divide exists for internet usage. Using a survey of 18,439 Americans, we find that high-income, educated people were more likely to have adopted the internet by December 2001. However, conditional on adoption, low-income, less-educated people spend more time online. We examine four possible reasons for this pattern: 1) differences in the opportunity cost of leisure time, 2) differences in the usefulness of online activities, 3) differences in the amount of leisure time, and 4) selection. Our evidence suggests this pattern is best explained by differences in the opportunity cost of leisure time. Our results also help to determine the potential effects of internet-access subsidies.
Goldfarb, Avi and Jeff Prince (2008), "Internet Adoption Patterns and Usage are Different: Implications for the Digital Divide," Information Economics and Policy, Vol. 20, No. 1, pp. 2-15.
internet adoption, digital divide