DIGITAL DIVIDE AND ECONOMIC INEQUALITY: UNLOCKING GROWTH WITH

EQUITABLE ACCESS.

1.0 Introduction

Digital Divide or the split between those with and without reliable internet connectivity and related
technologies, has profound implications on society. Lack of internet access affects the economy,
social opportunities, and educational equity, and many other areas. The impact of the digital divide
can be severe, but some solutions exist that can help bridge the gap. Digital inequality refers to the
unequal distribution of access to and utilization of digital technologies and resources, resulting in
disparities in opportunities, resources, and information among individuals and communities. It
encompasses various dimensions, including geographical, socioeconomic, and racial/ethnic
disparities. Digital inequality highlights the differential access to internet connectivity, hardware
devices, digital skills, and digital literacy, which can hinder individuals' ability to fully participate
in the digital age and benefit from the opportunities it offers

According to the United Nations Educational, Scientific and Cultural Organization (UNESCO),
approximately 45.2 percent of the world’s households do not have access to the internet. In 2020,
I was privileged to be a part of administrative staff on e-learning in secondary school. I noticed
that tutorial videos are good and simple to understand but very few students have access to them
when uploaded in the platform. This is due to high tariff and difficulty internet connections.

For instance in Nigerian On internet connectivity, only 41% of the population is covered by 4G.
Nigeria has very low fixed-broadband subscriptions (0.03 per 100 inhabitants), international
internet bandwidth (12,680 Kbit/S), and average mobile latency (49ms), which illustrate
significant chokepoints in accessing quality and equitable internet. Digital economy infrastructure
being treated as a luxury good, rather than a public good. The risks are too big to ignore, including
the huge digital divide it will end up creating, worsening the situation of an economy. Urban areas
are more connected than rural ones. And young people tend to be more digitally literate than older
adults.

The digital divide is most apparent among other intersections of inequality, especially race, gender,
and class. According to UNESCO’s report, women around the world are 23 percent less likely to
make use of mobile internet than their male counterparts. In Asia, Africa, and South America,
women are 30–50 percent less likely to use the internet at all.

Many unconnected households live in rural or remote areas without adequate broadband
infrastructure. Many people lack the funds to pay for digital devices or internet services. According
to the US Department of Education, students from low-income households are more likely to lack
internet access due to issues of affordability. Additionally, internet service providers are less likely
to invest in fiber broadband infrastructure in lower-income or rural areas, a practice known as
digital redlining.

The digital divide also has a severe impact on many daily activities. Those without reliable ICT
access miss out on valuable job opportunities and cannot participate in the global digital economy.
Students can face significant barriers while completing schoolwork or participating in remote
learning programs. Additionally, lack of internet access and poor digital literacy can have a major
impact on society, contributing to deeper stratification, inequality, and misinformation.

1.1 Why is a necessity?

The widespread adoption of smartphones and devices has increased the demand for high-speed
internet. Companies that adopt the use of technology tends to grow faster and make more profit.
Since productivity has increased resources to boost and make efficient used of the technology also
become a necessity. In aspect of online education and research, High speed internet has become
very part of education. For instances Zoom lectures, seminar and collaboration using different
platforms, if we must make progress. Without it, it’s really a setback for any individual, and
country as large. We also have online shopping and e-commerce, we now have many online
platforms for shopping and financing which make it necessity with high speed internet. Financial
transactions and online banking. It is great loss to the organization to miss a day without online
presence or bad network, because delay or failed transaction will reduce performance and profit.

It also frustrating to the individual doing the transaction. Remote work and online productivity,
Healthcare and telemedicine has become part of our life. It really need high speed connections to
work well. And the list continues.
1.2 Importance of addressing these issues for economic growth

Recent technological advancement has been exponential; one new development often spawns
multiple innovations. With the growth of 5G and the advanced applications that it unlocks, users
who are not already familiar with digital technologies may fall further and further behind. An
expansion of digital literacy education is necessary to bridge this gap, especially for older adults
and other individuals who are affected by the digital divide. The digital divide can seriously impact
economic opportunities for disconnected individuals and geographies. Individuals who do not have
digital skills may be unable to obtain higher-paying jobs. Additionally, countries without stable
broadband access can face challenges to economic development. By investing in widespread
infrastructure and digital access, however, the digital divide can begin to narrow and economic
opportunities may increase

1.3 The Impact of the Digital Divide on Society

The digital divide has deepened social stratification, leading to further segregation and widening
disparities. It is thus important for organizations, governments, and other institutions to invest in
digital literacy initiatives to close these gaps and improve outcomes for all individuals.

1.4 Loss of Social Opportunities.

ICT services play an important role in modern social interactions due to the rise of various
platforms that enhance personal, professional and business opportunities. Social media websites
like Facebook, Instagram, and Twitter facilitate communication and connectivity between friends,
family members, and complete strangers. Over time, this technology has become more and more
important for social interactions.

Additionally, digital technologies provide users with an opportunity to express their beliefs and
share information. Many digitally enabled users rely on social media websites to learn about
current events, engage in civic discourse, and receive important updates from their communities.
While harmful misinformation is present on these platforms, many users rely on online content to
learn and communicate, especially during the COVID-19 pandemic.
Without access to digital technologies, people can miss out on these social opportunities and feel
isolated. They are unable to communicate with loved ones in the same way as digitally enabled
individuals. These disparities may increase tensions among connected and disconnected
populations in areas where digital access varies from community to community.

1.5 Deepening Stratification

The digital divide is apparent along economic classes. People with lower incomes do not have the
resources to purchase digital devices or pay for monthly internet services. Users living in rural,
remote areas or less developed countries may not have access to the broadband infrastructure
necessary to access the internet. As more and more people gain connectivity, divisions will
continue to deepen between those who have internet access and those who do not.

Additionally, internet connectivity enables users to access valuable social, educational, and
economic opportunities. Those who are unable to connect to the internet lose out on these
opportunities, accentuating social differences, contributing to segregation and perpetuating
economic inequalities. This stratification can cause tension among class lines, especially in
communities where wealthier individuals have digital access while poorer members do not.

1.6 Barriers to Digital Literacy

Digital literacy refers to a person’s ability to use ICTs to find, evaluate, create, and communicate
information. To be digitally literate, a user must know how to control the physical components of
a computing device. They must also know how to open various programs, such as web browsers,
word processors, and messaging applications. A competent digital user will also need to know how
to communicate in digital spaces, identify credible information, and avoid scams, misinformation,
and other malicious schemes.

However, users who lack access to ICTs do not have the opportunity to develop digital literacy
skills, which further exacerbates the digital divide. It can become more difficult to develop these
skills as technology advances and becomes more complex. As a result, adults who are not digitally
literate are often far less likely to fully engage with digital tools.

1.7 The Educational Impact of the Digital Divide

According to the United Nations Children’s Fund (UNICEF), 1.3 billion children between the ages
of three and seventeen do not have access to the internet at home. Lack of digital access can have
profound impacts on school-age children, preventing them from accessing the same opportunities
and educational outcomes as their connected peers.

2.0 Digital Divide on US base on Race/Ethnicity

On average, Black, Latinx, and Native American students consistently score below White and
Asian students on standardized test scores (Hemphill et al., 2011; Vanneman, et al., 2009), are
underrepresented in advanced placement courses (Francis & Darity, 2020; Francis et al., 2019),
have lower high school graduation and college enrollment rates (Black & Sufi, 2002; Sharpe &
Darity, 2009), and are more likely to be disciplined with suspensions and expulsions from school
These differences are typically large and persist across decades. Underrepresented minority
students have fewer positive outcomes and more negative educational outcomes than their White
and Asian peers.

Much of this academic disadvantage is explained by racial and ethnic disparities in socioeconomic
status. For example, Black–White test score gaps are 49%–84% lower in math and 22% –132% in
reading after accounting for a range of socioeconomic factors such as parental income and
education, number of books in the home, or the presence of a computer in the home (Clotfelter et
al., 2009). Students from more privileged socioeconomic backgrounds are more likely to have
access to educationally enriching resources and stable learning environments—both in school and
at home (Diamond, 2006; Shedd, 2015). Household wealth is a key aspect of families’
socioeconomic status. Household wealth can provide educational access and opportunity through
the ability to afford a home in more stable neighborhoods with better schools; through access to
beneficial social and informational networks; through the ability to invest in educational tools such
as computers or a library of books; and by acting as a buffer to any potential negative shocks to
income that would otherwise create household instability.

Families of color likely needed to spend more of their own money on these critical resources for
remote learning than White families since they often live in neighborhoods with lower property
values and thus fewer resources for local schools. Black and Latinx households often experience
housing discrimination (U.S. Department of Housing and Urban Development, 2012). As a result,
communities become racially segregated and housing values in predominantly Black or Latinx
communities are lower than in comparable White neighborhoods (Flippen, 2004; Perry et al., 2018;
Raymond et al., 2011; Zonta, 2019). In turn, schools in these same neighborhoods have fewer
financial resources. Moreover, financial demands on under-resourced schools have only increased
during the pandemic (Partelow et al., 2020). The lack of public resources necessarily increases the
demand on families’ own finances.

Finally, the achievement gap will depend to some degree on the time spent on remote learning.
Children can spend time with their teachers, with family members helping them, and by
themselves. The digital divide will likely affect all of these school times—with teachers, family,
and by themselves—but to varying degrees. The largest effect likely exists for time with teachers
since it directly depends on the availability of reliable internet and device access in a remote
learning environment. Time learning with family will also depend on internet and device
availability, since those are necessary to access school resources. However, the correlation of hours
studying with family members with the digital divide is likely smaller than is the case for time
with teachers since family members can in part offset the lack of access to internet and devices
with other resources such as their own knowledge. Finally, the digital divide could also correlate
with time children spend studying by themselves. Yet, that correlation again could be smaller than
for the time spend with teachers since children may have other resources at home, mainly books.
The correlation of time spent studying by themselves with the digital divide, though, could be
greater than for time spent studying with family members since children are on their own.

The Black students spent more time studying remotely with teachers, family, and by themselves,
they were also less likely to have reliable access to remote devices, which decreases remote study
time, offsetting the positive correlation between Black students and remote study time. That is,
having the internet and devices available matters for remote learning and Black and
Hispanic/Latinx households often lack those, especially when they are renters and have trouble
paying their rent or mortgage.

2.1 European Union (developed countries):

By 2021, around 70% of European Union (EU) households have access to high-speed Internet.
However, broadband adoption was far lower in isolated areas, in less than 40% of homes having
access. Notably, there are substantial distinctions between EU member states. Malta, a small island
nation, for example, has achieved 100% broadband coverage, whereas Greece has only 20% of
homes connected, with low connection accessible to rural areas. The report in question illustrates
significant variations in broadband access and adoption across the EU, underlining the disparities
in digital connection among countries and regions. (Note: The date given in the original text is
fictitious, as the model's initial training data is only available until September 2021.)

2.2 Canada (developed country): Canadian countries have been thinking through bridging the
digital divide that is between developed and developing countries. This was done by Canada
making sure that everyone who is in their country has access to any type of technology and internet
they need, which is also very inexpensive and high-speed. Canada, throughout the past years, has
provided many funds to assist developing countries in order to help them improve their digital
literacy and internet connectivity. They collaborate with international groups to identify better
solutions for closing the digital gap. Canada believes that everyone should have access to digital
technologies and is working to achieve this goal.

2.3 Sub Saharan Africa (developing country): The Ibrahim Forum 2021 Report exposes startling
numbers illustrating Sub-Saharan Africa's digital gap. An incredible 89% of learners in the region
lack access to household computers, making it difficult for them to engage in digital learning and
explore educational materials. Furthermore, 82% of people lack internet connectivity, denying
them access to the vast amount of information and opportunities available online. Furthermore, at
least 20 million individuals in Sub-Saharan Africa have the issue of living in locations with no
mobile network service. This exacerbates the already limited access to essential services and hold
back effective communication. These statistics paint a worrisome portrait of the substantial barriers
encountered by people in the region, impeding their educational advancement, economic
prospects, and ability to participate in the global digital sphere. It is essential to confront these
disparities and bridge the digital divide as vital measures to empower the population, unlock their
untapped potential, and pave the way for a society that is more inclusive and equitable.

2.4 Chad (developing country): Chad, a developing country, faces challenges in closing the
digital gap due to limited technology availability, insufficient infrastructure, and low proportions
of internet use. The country has digital connection gaps, notably in areas that are remote and rural.
International organizations, non-governmental organizations, and the Chadian government are
working together to enhance internet facilities, encourage digital literacy, and increase
technological accessibility. However, ongoing efforts and investments are required to overcome
these obstacles and achieve digital inclusion, allowing Chad to realize benefits in health, schooling,
and economic prospects.

2.5 Niger (developing country): Because of a lack of technology availability, poor infrastructure,
and low internet usage rates, Niger confronts hurdles in bridging the digital gap as a developing
country. There are considerable inequalities in digital access across the country, particularly in
remote regions. International organizations, non-governmental organizations, and the Nigerien
governments are working to strengthen internet facilities promote digital literacy and improve
technological accessibility. However, continued efforts as well as funding are required to remove
these barriers and attain digital inclusion, which will boost Niger's health care, educational and
financial prospects.

2.6 Somalia (developing country): Due to insufficient infrastructure and political instability,
Somalia confronts obstacles in closing the digital divide as a developing country. The country's
internet penetration rate is poor, especially in rural areas. Efforts are being made to boost internet
structures, develop digital literacy, and increase access to technology. However, much more work
needs to be done to remove obstacles and attain digital inclusion. To open economic potential and
increase connectedness for the Somali people, ongoing investments in educational institutions,
infrastructure, and political structures are required.

2.7 Remote Learning during the COVID-19 Pandemic

During the COVID-19 pandemic, the disparities present in the digital divide became extremely
apparent as schools moved online. Students without reliable internet access did not have the
necessary resources to connect to remote learning platforms. This made it difficult for some
students to fully participate in their learning environments.

In the United States, for example, nearly 55 percent of disconnected students came from Black,
Hispanic, and Native American households, despite making up only 40 percent of the general
student population. Additionally, 50 percent of disconnected students came from families with an
annual income of less than $50,000 per year.

The digital divide had the most impact on children from rural areas in the southern United States,
affecting 40–50 percent of students in Alabama, Arkansas, Oklahoma, and Mississippi.
Approximately 25 percent of disconnected students did not have reliable broadband access, and
60 percent of disconnected students could not afford internet services or digital devices at all.

3.0 INEQUALITY AND ECONOMIC IMPACT

3.1 Access to Job Opportunities

As of 2021, people were in the midst of the Fourth Industrial Revolution. This stage describes the
ongoing automation and implementation of advanced technology in manufacturing and other
industrial practices. As a result, more and more jobs require employees to hold digital skills. The
digital divide can make it more difficult for disconnected users to obtain employment.

This gap is apparent for middle-skill jobs, or jobs that require some training beyond high school
but do not require a bachelor’s degree. Research shows that over 80 percent of middle-skill jobs
require a certain level of digital proficiency. Middle-skill and more advanced jobs often pay higher
wages than low-skill positions.

As a result, individuals who do not have digital skills lose access to valuable job opportunities.
Additionally, disconnected people are unable to participate fully in the global digital economy and
cannot participate in remote or web-based jobs.

These factors can perpetuate the cycle of economic inequality and lead to lower earnings over
time. However, digital skills training courses and internal upskilling within organizations can help
improve economic outcomes and alleviate these disparities.

3.2 Access to Educational Resources

Reliance on digital technologies in education is becoming increasingly more common. Many

students need to use an internet-enabled device to complete homework and research projects or
attend remote classes. Colleges and universities often require students to submit applications
online, and students often need to use the computer to research scholarships, prepare for
standardized tests, and complete other educational tasks.

However, some students lack access to the devices and infrastructure necessary to interact with
digital educational resources. As a result, they can struggle to complete homework and fall farther
behind in school than their digitally enabled counterparts.

Schools and governments can take action to improve educational outcomes for disconnected
students. Aside from prioritizing broader digital access overall, investing in digital technologies
for students can have positive impacts. In fact, one study of a Texas school district found that an
increase in school district internet access spending improved graduation rates by 4.7 percent.

Digital literacy is another important factor affecting the educational digital divide. A student
cannot adequately complete internet-based tasks without knowing how to use a device and
navigate a web browser. Schools may be able to alleviate literacy issues by teaching students how
to use digital devices from an early age. By implementing computer classes and increasing ICT
access at school, students can leverage and develop digital skills even if they experience barriers
to access at home.

3.3 Barriers to Economic Development

ICTs have the potential to promote economic growth and social development. In fact, a 2020 study
examining digital technology in thirty-nine African countries found a positive correlation between
gross domestic product (GDP) and digital adoption. Specifically, social media usage and the
importance of ICTs to the government’s vision are significant for economic growth.

Research from the International Telecommunications Union shows that an increase in digitization
can have the following impacts on various regions.

 In Africa, an increase of 10 percent in mobile broadband penetration can increase GDP by

2.5 percent per capita.
 In the Arab states, a 10 percent increase in digitization can result in a 2.49 percent growth
in GDP by capita.
  In North and South America, an increase of 10 percent in fixed broadband penetration can
result in a 1.9 percent growth in GDP per capita.
 A 10 percent increase in digitization in Europe may result in a 1.4 percent growth in GDP
per capita.
 In the Asia-Pacific region, a 10 percent increase in fixed broadband penetration may result
in a 0.8 percent growth in GDP per capita.

4. Discussion and Conclusion

4.1 How to Bridge the Digital Divide

The digital divide continues to have a profound impact on our society, and barriers will likely
deepen in the future. Governments, organizations, and institutions around the world will need
to develop solutions to bridge these inequalities and encourage greater access to digital
technology.

The education system has the ability to disrupt part of this chain of wealth inequality by
providing enriched educational opportunities equitably so that individuals from low-wealth
backgrounds have access to opportunities that a good education can provide. However, the
education system also has the ability to uphold the intergenerational cycle of wealth inequality
if wealth continues to be a prerequisite for access to the highest quality education in internet
access.

COVID-19 pandemic will exacerbate existing racial wealth inequality, and specifically, that
the switch to remote learning for K-12 students during the pandemic will reinforce educational
disparities by race and ethnicity. Given the link between educational achievement and future
income, pandemic-induced educational disparities have the potential to feed into future wealth
gaps, perpetuating thy cycle of intergenerational wealth inequality.

The coronavirus pandemic forced most school systems to move part or all of students’ learning
time online. Yet, many students of color had fewer opportunities at participating in remote
learning during COVID-19 than their White peers. Black, Latinx, Native American, and Asian
American families often had less reliable access to the internet and electronic devices for
educational purposes than White families. Widespread wealth inequality before the pandemic
 contributed to this digital divide. The families that needed more wealth to get the resources
necessary for successful remote learning were less likely to have wealth to begin with.

Students of color likely spent less time on remote learning activities either by themselves or
with their parents or teachers due to the widespread digital divide. The pandemic thus likely
widened educational achievement gaps. Such achievement gaps can appear over just a few
months and they can persist for decades. The lack of families’ wealth can thus translate into
fewer economic opportunities for their children as families have fewer resources to handle the
unique demands of remote learning during the pandemic.

4.2 How to Bridge the Digital Divide for Underserved Populations

The digital divide disproportionately affects certain groups. Individuals who are low income,
live in developing countries, and, or, have experienced systemic inequality are the most likely
to lack access to the internet and other communication technologies. The digital divide helps
to perpetuate a cycle of economic limitations and lack of technological knowledge.
However, local communities can help break this cycle and improve the quality of life for
everyone. Advocating for equitable internet access, speaking with local government and
community leaders, and working with grassroots organizations can bridge the digital divide.
For example, take Project OVERCOME, an initiative to bring fast and affordable internet to
an underserved neighborhood in Detroit, Michigan. Detroit is a city in the United States that
has historically lacked equitable access to the internet. Local nonprofits Detroit Community
Technology Project and Grace in Action Collectives will carry out this project.
A collective effort is necessary to bridge the technological gap for underserved communities.
When examining the economic effects of digital divide, it’s clear that improving digital literacy
can be beneficial. By investing in people, governments could tap into a lucrative well of
financial potential, boosting its economic state.
4.3 Supporting Economic Growth with Digital Inclusion
The economic effects of the digital divide are clear. Lack of internet access and poor digital
literacy prevents individuals from fully participating in their countries’ economies. By bridging
the knowledge gap, countries can leverage the full potential of their populations to innovate
and grow, improving the quality of life for everyone.
To bridge the digital divide, governments, organizations, and institutions must invest in digital
infrastructure, promote digital literacy, and address affordability issues. Providing broadband
infrastructure in rural and low-income areas, offering affordable internet services, and integrating
digital literacy education in schools are critical steps. Additionally, initiatives such as public Wi-
Fi hotspots and subsidies for digital devices can help increase access

Wealth and education already create a cycle of intergenerational inequality. Families that have
more wealth can offer more educational opportunities for their children, who can then take
advantage of those opportunities in ways that create more wealth. The digital divide has emerged
as a key reinforcing mechanism of education through wealth and of future wealth through
education.

1. Bridging the Opportunity Gap

Digital equity provides marginalized individuals, including low-income communities,
seniors, and minorities, with equal access to education, job opportunities, and information.
With increased access to online learning platforms and digital resources, individuals can
acquire new skills, access educational content, and participate in remote work opportunities,
thus closing the opportunity gap and empowering them to contribute actively to the economy.

2. Fostering Digital Entrepreneurship

Digital equity creates an environment that nurtures entrepreneurship and innovation. When
aspiring entrepreneurs have access to digital tools and resources, they can develop and market
their products and services more efficiently. This fosters a culture of innovation and enhances
the growth of startups, ultimately leading to job creation and economic revitalization.

3. Enhancing Workforce Competitiveness

As industries continue to digitize and embrace technological advancements, a digitally literate
workforce becomes essential. Digital equity ensures that individuals have the skills needed to
meet the demands of the modern job market. With access to digital training and resources, job
seekers can acquire the necessary skills to remain competitive and relevant, enhancing their
employability and overall economic productivity.

4. Strengthening Community Connectivity

 Digital equity strengthens the social fabric of communities by promoting communication and
connectivity. Increased internet access enables community members to engage in online
forums, access local resources, and collaborate on projects that benefit the community as a
whole. Stronger community bonds lead to collective efforts towards economic development
and the implementation of innovative solutions to local challenges.

5. Encouraging Digital Inclusion in Rural Areas

Rural communities often face unique challenges in accessing technology and digital services.
By fostering digital inclusion in rural areas, we unlock the potential for these communities to
participate in the broader economy and improve their overall quality of life.

Bridging the digital divide is not just about providing access to technology; it's about creating
equitable opportunities for all individuals to thrive in a digital world. By investing in digital
infrastructure, promoting digital literacy, and addressing affordability issues, we can unlock
growth and reduce economic inequality. These efforts will ensure that all individuals, regardless
of their socioeconomic status, can participate fully in the digital economy and society. Addressing
the digital divide is crucial for breaking the cycle of intergenerational inequality and fostering
inclusive growth.

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