Differential trends in households’ connection to the Internet: An actor-centered explanation

Abstract

In this article, an actor-centered model of households’ decision to obtain an Internet connection is set up to explain the diffusion of Internet technology. First, we derive a mechanism based on the demand and supply of online information, services, and goods which drives this diffusion. Afterwards, we link this mechanism to social inequalities with regard to digital technologies and deduce hypotheses regarding changes in the relevance of different socio-structural factors for adopting an Internet connection over the diffusion process. In our analyses, we address the following research questions: Which socio-structural differentiations persist over the diffusion process and why? How much of the inequality in the diffusion of Internet connections by socio-economic status can be explained by differences in information technology competencies and resource restrictions? We test our model with a discrete time transition rate analysis and Socio-Economic Panel data. Overall, our model rationalizes about 75% of the gross inequality by socio-economic status between households’ choices to connect to the Internet. Regarding the persistence of social inequalities in adopting digital technologies, our study highlights the importance of structural opportunities to develop strategic information technology competencies during socialization. With respect to related indicators, our analyses show an about 13-fold increase in the influence of birth cohort differences on the adoption of Internet connections over the diffusion process. As a consequence, a central implication of our study is that we expect birth cohort differences in the diffusion of digital technologies not only to persist, but to increase.