A household’s or individual’s level of income is a strong predictor of their use of information communication technology (ICT), and is often tied to their educational attainment. Various studies have commented on income’s impact on the digital divide:
The [1]OECD report Understanding the Digital Divide studied PC penetration and internet access from 1998-2000 in OECD countries including Australia, France, Japan, the Netherlands and the United States. For all countries, income was a major determinant of PC ownership and Internet access in the home. Higher income groups acquire ICT’s early in the diffusion of new technology, with penetration of ICT’s very high in this demographic. However, by 2000, the highest rates of increase in Internet access were reported for the lowest income groups in all countries. For example, in France from 1998-2000, the growth rate for access in the lowest income bracket was 68%, compared to 47% for the highest income bracket. In 2001, nearly 78% of US households with an income between $50,000 and $75,000 had Internet access, only 40% of those with household incomes between $20,000 and $25,000 had Internet access (Mossberger, Tolbert and Stansbury, 2003, p.16). In the US, households with lower incomes have registered increases in internet access at much faster rates than the national average (Servon, 2002,p.34), possibly because they are simply ‘catching up,’ to the higher income earners who have already installed the internet. This increase can be attributed in part to [2] Moore’s Law: According to Gordon Moore, founder of Intel, the central processing units (CPU’s) used in personal computers roughly double in capacity each time a new chip is released, which is roughly within 18 to 24 months. This has contributed to a steady drop in computer and peripheral prices in recent years, with PC prices falling by around 23% annually between 1996 and 1998 alone (Compaine, 2001, p.320). Nevertheless, ICT’S still remain out of reach for many. In addition to initial purchase price, families also need money to maintain their computers, to purchase software and peripherals, and to pay for monthly internet access (Servon, 2002, p. 8). Moss and Mitra (1998, in Mills and Whitacre, 2003, p.220) comment that income based differences stem, in part, from the fact that the Internet is not an essential household good. Compaine provides this argument: New and expensive technologies have to start somewhere and almost invariably that means with two groups: those who find it undeniably useful - often commercial entities - and those who can simply afford it. Similarly, where infrastructure must be built, the provider will start their buildouts aimed at audiences who are most likely to understand the value and be amenable to their services. Again, that typically means a focus on commercial ventures and wealthier residential areas (2001, p.325).
Although cost is a major barrier to Internet adoption by low-income earners it is not the only one. Mills and Whitacre (2003, p.220) assert that there is less content on the Internet catering for the needs of low-income earners, such as information on assistance programs, entry level jobs and low rental housing. Although the income dimension of the divide is narrowing, there still remains a gap between high and low income earners with respect to Internet access. Because of the Internet’s scope for social, political and economic participation, lower income earners who are not connected are disadvantaged. By developing IT skills through government subsidised or not-for profit training initiatives, low income earners will be able to command higher incomes in the new economy, therefore raising the GDP of their nation.
Compaine, B.M. (2001) ‘Declare the War Won’ in The Digital Divide: Facing a Crisis or Creating a Myth? Cambridge: MIT Press, pp. 270, 320, 324-325. ISBN 0262531933
Mills, B.F. and Whitacre, B.E. (2003) ‘Understanding the Non-Metropolitan - Metropolitan Digital Divide, Growth and Change. Vol. 34, No. 2 (Spring) pp. 219-221.
Mossberger, K., Tolbert, C.J., and Stansbury, M. (2003) Virtual Inequality: Beyond the Digital Divide, Washington: Georgetown University Press, pp. 16, 63, 124, 220. ISBN 0878409998
Organisation for Economic Co-operation and Development ‘Understanding the Digital Divide' (2002) Available: http://www.oecd.org/dataoecd/38/57/1888451.pdf Retrieved 20/10/05
Servon, L. (2002) Bridging the Digital Divide: Technology, Community and Public Policy, Melbourne: Blackwell Publishing, pp. 8, 33-34. ISBN 0631232427
