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Uncovering Regional Inequalities in Digitalization: A Multifaceted Measurement for Germany

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  • Detemple, Jonas
  • Wicht, Alexandra

Abstract

The ongoing global digital transformation has significant implications for economies and societies, with potential benefits and challenges. This study addresses the critical need for a comprehensive measure of regional digitalization in Germany to better understand its impact on various aspects of life, including education, employment, and working conditions. Using confirmatory factor analysis (CFA), it introduces a multifaceted regional digitalization indicator at the administrative district level (NUTS-3) that incorporates digital infrastructure, culture, technology capacity, high-tech human capital, and digitalization-related innovativeness. The study reveals that digitalization varies significantly across regions. Urban regions tend to have higher digitalization levels, which are positively associated with economic productivity and high-skilled labor demand. Moreover, regional digitalization complements the established measure of regional automation potential, as the two are only slightly correlated, highlighting the complexity of regional disparities in the digital age.

Suggested Citation

  • Detemple, Jonas & Wicht, Alexandra, 2023. "Uncovering Regional Inequalities in Digitalization: A Multifaceted Measurement for Germany," SocArXiv e439g, Center for Open Science.
    • Handle: RePEc:osf:socarx:e439g
    DOI: 10.31219/osf.io/e439g
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    References listed on IDEAS

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    8. Hornstein, Andreas & Krusell, Per & Violante, Giovanni L., 2005. "The Effects of Technical Change on Labor Market Inequalities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 20, pages 1275-1370, Elsevier.
    9. repec:pri:cepsud:113krusell is not listed on IDEAS
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