The Digital Divide And Job Stability During The Great Recession

Abstract

Researchers and policy makers have identified the existence of a Digital Divide in the United States, between those who have access to the internet and technology in general, and those who do not. Most research into the relationship between the access to technology and labor market outcomes has revolved around on-the-job computer use and the extent to which it determines wages. Using a nationally representative dataset, this study looks instead at access to the internet at home prior to the Great Recession, and examines whether this is significantly related to job loss during the Great Recession. The results of this analysis indicate that internet access prior was a stronger predictor of job loss during the Great Recession than on-the-job computer use. With recent data that internet access levels in the United States may have plateaued for certain sections of the population, this finding has broad implications for both workers and employers, and lends urgency to the policy objective of expanding internet access.