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Internet and income inequality: A research note

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  • Yongzheng Liu

    (Renmin University of China)

Abstract

By using a sample of 51 developed and developing countries, this research note empirically examines the impact of internet diffusion on income inequality. To address the potential endogeneity issue of internet diffusion, I employ lightning density as an instrument for internet diffusion and use an instrumental variable method for the estimations. I find that internet diffusion significantly reduces income inequality. The results are robust across alternative specifications.

Suggested Citation

  • Yongzheng Liu, 2017. "Internet and income inequality: A research note," Economics Bulletin, AccessEcon, vol. 37(4), pages 2846-2853.
    • Handle: RePEc:ebl:ecbull:eb-17-00674
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    References listed on IDEAS

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    1. Daniel R. Feenberg & James M. Poterba, 1993. "Income Inequality and the Incomes of Very High-Income Taxpayers: Evidence from Tax Returns," NBER Chapters, in: Tax Policy and the Economy, Volume 7, pages 145-177, National Bureau of Economic Research, Inc.
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    6. Bourguignon, Francois & Morrisson, Christian, 1998. "Inequality and development: the role of dualism," Journal of Development Economics, Elsevier, vol. 57(2), pages 233-257.
    7. H. Naci Mocan, 1999. "Structural Unemployment, Cyclical Unemployment, and Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 122-134, February.
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    Cited by:

    1. Dibyendu Maiti & Akshara Awasthi, 2020. "ICT Exposure and the Level of Wellbeing and Progress: A Cross Country Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(1), pages 311-343, January.

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    More about this item

    Keywords

    Internet diffusion; Income inequality; Endogeneity;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • L8 - Industrial Organization - - Industry Studies: Services

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