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Do income distribution and socio-economic inequality affect ICT affordability? Evidence from Australian household panel data

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  • Ali, Mohammad Afshar
  • Alam, Khorshed
  • Taylor, Brad
  • Rafiq, Shuddhasattwa

Abstract

The impact of information and communication technology (ICT) on human development depends on the distribution of income and affordability of ICT services. This study explores the responsiveness of ICT affordability to income distribution and socio-economic inequality. Applying a generalised linear mixed model and a random effects model based on Australian household panel data covering 2011–2017, this study finds that gross ICT affordability is positively associated with income distribution and socio-economic inequality. Interestingly, for low-income subgroups, inequality reveals to have a positive impact on ICT affordability, whereas for high-income household, the impact is reversed. These findings provide insights that are useful in the design of policies and strategies to promote ICT affordability and penetration.

Suggested Citation

  • Ali, Mohammad Afshar & Alam, Khorshed & Taylor, Brad & Rafiq, Shuddhasattwa, 2019. "Do income distribution and socio-economic inequality affect ICT affordability? Evidence from Australian household panel data," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 317-328.
    • Handle: RePEc:eee:ecanpo:v:64:y:2019:i:c:p:317-328
    DOI: 10.1016/j.eap.2019.10.003
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    Cited by:

    1. Cuesta, Lizeth & Ruiz, Yomara, 2021. "Efecto de la globalización sobre la desigualdad. Un estudio global para 104 países usando regresiones cuantílicas [Effect of globalization on inequality. A global study for 104 countries using quan," MPRA Paper 111022, University Library of Munich, Germany.
    2. Wang, Di & Zhou, Tao & Lan, Feng & Wang, Mengmeng, 2021. "ICT and socio-economic development: Evidence from a spatial panel data analysis in China," Telecommunications Policy, Elsevier, vol. 45(7).
    3. Adams, Samuel & Akobeng, Eric, 2021. "ICT, governance and inequality in Africa," Telecommunications Policy, Elsevier, vol. 45(10).
    4. Wang, Di & Zhou, Tao & Wang, Mengmeng, 2021. "Information and communication technology (ICT), digital divide and urbanization: Evidence from Chinese cities," Technology in Society, Elsevier, vol. 64(C).

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    More about this item

    Keywords

    Information and communication technology; Affordability; Income distribution; Socio-economic inequality; Panel data;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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