Information Society Program Social-economic Implications of ICT Usage and Access in Latin America: Micro Data Analysis WPIIS -OECD Paris, 16-17 June 2010 Mariana.balboni@cepal.org ECLAC- Division of Production, Productivity and Management Information Society Program
Agenda 1. ECLAC s Information Society Program 2. Micro data analysis: ICT Access in Latin America: Evidence from Household Level Patterns of Internet Use in Latin America Impact of Internet Use on Individual Earnings in Latin America What Explains the Gender Differences in Internet Use in Latin America? 3. Challenges and final reflections
ECLAC s Information Society Program
ProgramSocInfo Innovation and ICT Unit Division of Production, Productivity and Management (DPPM) Economic Commission for Latin America and the Caribbean (ECLAC) OSILAC Observatory for the InformationSociety in Latin America and thecaribbean elac Regional Action Plan for the Information Society Inclusive Political Dialogue (Project from @LIS2 Program) www.cepal.org/socinfo/
ProgramSocInfo Contributes to the development of Information Societies in Latin America and the Caribbean Statistical harmonization Project and programme follow-up Quantitative and descriptive studies Exchange of information and experiences Regional cooperation
In order to set future priorities for developing the Information Society in Latin America and the Caribbean on the basis of a broad regional consensus, the ECLAC s Information Society Programme has elaborated the following open online survey for experts in information technology and communications (ICT). The results will be considered for the elaboration of the proposal for the next regional Action Plan elac2015: building innovative and inclusive digital societies. Until July 162010. http://socinfo.cepal.org
OSILAC Working together with: - Partnership on Measuring the ICT for development World Bank - Statistical Conference of the Americas (CEA-CEPAL) CEPAL) - Regional NSOs and Ministries ESCWA To define and gather a common set of ICT indicators and to help developing countries in their efforts to produce statistics of the information society: http://measuring-ict.unctad.org ict.unctad.org - Since 2003
Progress in core indicators availability Percentage of countries which measure core ICT indicators (revised list) in their household surveys. 80% 16 50% 30% 10 15% 3 10% 10% 6 2 2 0% 10% 2 Latin America The Caribbean Latin America The Caribbean Household surveys Business surveys 2000-2004 2005-2010 Source: OSILAC based on information reported by National Statistical Offices.
88 surveys from 17 countries http://www.eclac.org/tic/flash/
ICT Access in Latin America: Evidence from Household Level
The diffusion of ICTs is becoming a central policy issue for developing countries, being identified by international policymakers and scholars as an important driver of knowledge, innovation and economic growth. We have analyzed ICT access patterns in seven Latin American countries: Brazil, Costa Rica, El Salvador and Paraguay (2005), Chile, Honduras and Mexico (2006). In particular, we studied the socio-economic determinants of the presence of computers and Internet connection at household level. Descriptive data show that ICT diffusion is concentrated in narrowly defined segments of income and educational groups in each country.
Across countries, there is also evidence that the lower is the ICT diffusion, the higher is the inequality of that diffusion. Econometrically, we model the probability that a household has or has not adopted computer technologies and Internet access. (Heckprobit methodology). The results confirm that variables such as income, education and rural/urban areas are key determinants of ICT diffusion. Additionally, there is evidence of geographical network effects and complementarities between Internet uses at different locations.
Patterns of Internet Use in Latin America
The identification of the drivers of Internet diffusion in a country is a relevant issue in order to correctly evaluate its impact on the society and to design effective public policies. We analyzed ICT access patterns in seven Latin American countries: Brazil, Costa Rica, El Salvador and Paraguay (2005), Chile, Honduras and Mexico (2006). Three types of estimation were used (probit, biprobit and heckprobit) The study helps to correctly identify determinants of Internet use, decoupling them from those of access. It is the first cross-country analysis of Internet use in Latin America using microdata. And it is one of the very few studies which analyze the determinants of adoption of specific internet applications. Social-economic Implications of ICT Seminario Usage and Innovación Access in y TIC Latin America: Buenos Micro Data Analysis Aires 14-15 de Octubre 2009
The results show evidence that access does not translate automatically into usage. In particular, females are found to be less likely to use the Internet, even once access is provided. Then, granting access does not necessarily mean to erase the gender digital divide. Furthermore, the analysis of single Internet application use gives some evidence of a differentiated use by socio- demographic categories, suggesting that women and people located in rural areas could benefit more from Internet diffusion. Social-economic Implications of ICT Seminario Usage and Innovación Access in y TIC Latin America: Buenos Micro Data Analysis Aires 14-15 de Octubre 2009
Impact of Internet Use on Individual Earnings in Latin America
We used matching techniques to study the impact of internet use on earnings based on household data for six countries: Brazil, Costa Rica (2005), Chile (2006), Honduras, Mexico and Paraguay (2007) Given their different internet use patterns and their implications, the analysis is done for salaried and self-employed workers separately. Salaried workers users mainly access the internet at work, self employed users access the internet mainly at other places. Therefore, the returns to internet use for salaried workers may be associated not only to individual but also to workplace characteristics.
Results indicate a large effect of internet use on earnings for both groups of workers in most of the countries studied. These returns are high compared with estimates for industrialized countries and they could be explained by the lower prevalence of internet use in the region for the international standards. Additionally, given that the estimations rely on crosssection data, they may not fully control for individuals characteristics before internet adoption. This calls for the need of panel-data on new ICTs diffusion in the region. 18
What Explains the Gender Differences in Internet Use in Latin America?
This paper uses recent household data for the same six Latin American countries to explore the patterns of internet use by gender in the region. We find that on average there is a gender digital divide against women. This pattern is more frequent in urban rather than in rural areas; it affects older women of all education levels and is more prevalent in the middle and upper ends of the household income distribution. There is no evidence though of a gender digital divide among the employed. 20
However, a probitmodel for the determinants of internet use suggest that after controlling for education, income, labor market status, occupation and sector of activity (among other variables) there are very small differences in internet use by gender. We conclude that the observed gender disparity in internet use is a result of different men-women characteristics. Among others, that means it is important to understand the drivers of Internet diffusion to define appropriated public policies. 21
Challenges and final reflections
There has been great progress in the region, but much remains to be done There are still challenges collecting data: Awareness/ Financing Frequency Use of data / Micro data analysis Importance of harmonized indicators for the development of public policies and national strategies It is necessary to elaborate new ICT indicators (broadband, barriers, impact, innovation, e-government, e-health, cibersecurity, etc) that allow the monitoring of initiatives like the Plan of Action elac2015 Seeking synergies and coordination among and between institutions is the only efficient way to work towards achieving common goals
Thanks! Mariana.balboni@cepal.org http://socinfo.cepal.org Twitter: socinfo_cepal