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Internet and Income Inequality: A Research Note

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  • Yongzheng Liu

    (School of Finance, China Financial Policy Research Center, 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," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1723, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper1723
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    References listed on IDEAS

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    1. Lentz, R. G. & Oden, Michael D., 2001. "Digital divide or digital opportunity in the Mississippi Delta region of the US," Telecommunications Policy, Elsevier, vol. 25(5), pages 291-313, June.
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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.
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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

    JEL classification:

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

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