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A need for speed? Rural Internet connectivity and the no access/dial-up/high-speed decision

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  • Brian Whitacre
  • Bradford Mills
Abstract
As residential high-speed Internet access has become more prevalent, the nature of the rural-urban digital divide in access has shifted. In 2000, dial-up access rates in rural households lagged behind their urban counterparts by 11 percentage points. By 2003, however, dial-up access rates were equal in rural and urban areas, but high-speed access rates were 14 percentage points higher in urban areas. This article uses a nested logit model to explore the household decision between no Internet access, dial-up access and high-speed access. A decomposition technique is then used to estimate the contributions of various factors, including education, income and infrastructure levels, to differences in Internet access among rural and urban households. The results suggest that policies which solely promote infrastructure in rural areas fail to address the dominant factors in the emerging high-speed digital divide.

Suggested Citation

  • Brian Whitacre & Bradford Mills, 2010. "A need for speed? Rural Internet connectivity and the no access/dial-up/high-speed decision," Applied Economics, Taylor & Francis Journals, vol. 42(15), pages 1889-1905.
    • Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1889-1905
    DOI: 10.1080/00036840701749001
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    References listed on IDEAS

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    1. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    2. Hensher, David A. & Greene, William H., 2002. "Specification and estimation of the nested logit model: alternative normalisations," Transportation Research Part B: Methodological, Elsevier, vol. 36(1), pages 1-17, January.
    3. Bradford F. Mills & Brian E. Whitacre, 2003. "Understanding the Non‐Metropolitan—Metropolitan Digital Divide," Growth and Change, Wiley Blackwell, vol. 34(2), pages 219-243, June.
    4. Mark Drabenstott, 2001. "New Policies for a New Rural America," International Regional Science Review, , vol. 24(1), pages 3-15, January.
    5. Tony H. Grubesic & Alan T. Murray, 2004. "Waiting for Broadband: Local Competition and the Spatial Distribution of Advanced Telecommunication Services in the United States," Growth and Change, Wiley Blackwell, vol. 35(2), pages 139-165, March.
    6. Nielsen, Helena Skyt, 1998. "Discrimination and detailed decomposition in a logit model," Economics Letters, Elsevier, vol. 61(1), pages 115-120, October.
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    1. Waqas Shair & Tatheer Zahra & Muhammad Tayyab & Neelam Kubra, 2022. "The Impact of the Digital Divide on Wage Gaps among Individuals in Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 97-107, December.
    2. Pender, John & Goldstein, Joshua & Mahoney-Nair, Devika, 2022. "Impacts of the Broadband Initiatives Program on broadband adoption and home telework," Telecommunications Policy, Elsevier, vol. 46(8).
    3. Jitendra Parajuli & Kingsley E. Haynes, 2017. "Broadband and narrowband Internet in Nepal," Asia-Pacific Journal of Regional Science, Springer, vol. 1(1), pages 85-97, April.
    4. Xose Picatoste & Anabela Mesquita & Fernando González-Laxe, 2023. "Gender wage gap, quality of earnings and gender digital divide in the European context," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(2), pages 301-321, May.

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