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‘Digital divide’ among European entrepreneurs: Which types benefit most from ICT implementation?

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  • Millán, José María
  • Lyalkov, Serhiy
  • Burke, Andrew
  • Millán, Ana
  • van Stel, André

Abstract

This paper explores the extent to which information and communications technology (ICT) is used by different types of self-employed individuals and how it affects their earnings. We investigate independent own-account workers (IOA), self-employed with employees (SEwE) and dependent self-employed workers (DSEW). Using recent survey data for 35 European countries, we find that earnings rise with the level of ICT use but only from a threshold of utilisation accounting for at least 25 per cent of the time. Moreover, we find that the increase in earnings associated with ICT adoption and usage is larger for SEwE types when compared to both IOA and DSEW. Finally, we find an indirect negative inertia effect of job tenure (i.e., entrepreneurs who have been running their business for a relatively long period of time) on earnings (via low ICT adoption and use). Policy implications are also discussed.

Suggested Citation

  • Millán, José María & Lyalkov, Serhiy & Burke, Andrew & Millán, Ana & van Stel, André, 2021. "‘Digital divide’ among European entrepreneurs: Which types benefit most from ICT implementation?," Journal of Business Research, Elsevier, vol. 125(C), pages 533-547.
    • Handle: RePEc:eee:jbrese:v:125:y:2021:i:c:p:533-547
    DOI: 10.1016/j.jbusres.2019.10.034
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    3. Nicola Matteucci & Raffaella Santolini & Silvio Di Fabio, 2023. "ICT diffusion in public administrations and business dynamics: Evidence from Italian municipalities," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1233-1271, December.
    4. Wang, Shangrui & Cao, Anran & Wang, Guohua & Xiao, Yiming, 2022. "The Impact of energy poverty on the digital divide: The mediating effect of depression and Internet perception," Technology in Society, Elsevier, vol. 68(C).
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    7. Drydakis, Nick, 2024. "Reducing the Gender Digital Divide Amongst Immigrant Entrepreneurs," IZA Discussion Papers 17275, Institute of Labor Economics (IZA).
    8. Barra, Cristian & Grimaldi, Mara & Muazzam, Amina & Troisi, Orlando & Visvizi, Anna, 2024. "Digital divide, gender gap, and entrepreneurial orientation: How to foster technology adoption among Pakistani higher education students?," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).
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    More about this item

    Keywords

    Digital divide; ICT adoption and usage frequency; Entrepreneurial earnings; Inertia effects; Types of entrepreneurship; European Working Conditions Survey; Europe;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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