Are We Really A Nation Online?Ethnic and Racial Disparities in Access to

Technology and Their Consequences

Robert W. Fairlie

University of California, Santa Cruz and National Poverty Center, University of Michigan

September 27, 2005

Introduction

"A Nation Online: How Americans Are Expanding Their Use of the Internet" by the U.S. Department of Commerce (2002)

Documents the rapid growth in the use of the Internet in the past few years. Notes that Internet use among African-Americans and Latinos grew at a

substantially faster rate from August 2000 to September 2001 than Internet use among whites or Asians.

Latest report by the Department of Commerce (2004) entitled, "A Nation Online: Entering the Broadband Age,“

Does not discuss racial differences in access to technology. A closer look at the data, however, reveals that we have a long way to go.

Minorities have made gains as a ratio to whites, but not in percentage point terms.

Outline

Document ethnic and racial disparities using data from the October 2003 Current Population Survey.

Conducted by the U.S. Census Bureau and the Bureau of Labor Statistics Representative of the entire U.S. population and interviews approximately

50,000 households. The October 2003 CPS is the most recent government dataset on access to

technology. Used in the Department of Commerce’s most recent “Nation Online” report.

Summarize findings from research on the causes of the digital divide. Summarize findings from research on the labor market and educational

consequences of the digital divide.

Figure 1Percent of the Population that Has a Home Computer by Race/Ethnicity

Current Population Survey, October 2003

74.6%

50.6% 48.7%43.9%

59.3% 59.6%

53.7%

68.3%

51.6%

77.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

White Black Latino Mexican PuertoRican

Cuban Central/South

American

OtherLatino

NativeAmerican

Asian

Figure 2Percent of the Population (Ages 18+) with Access to a Home Computer by Race/Ethnicity

Currrent Population Survey, 1984-2003

0%

20%

40%

60%

80%

100%

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002

White, non-Latino

Latino

Black

Figure 3Percent of the Population that Has Access to the Internet at Home by Race/Ethnicity

Current Population Survey, October 2003

67.3%

40.5%38.1%

32.6%

53.0%50.4%

43.9%

54.9%

40.9%

70.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

White Black Latino Mexican PuertoRican

Cuban Central/South

American

OtherLatino

NativeAmerican

Asian

Figure 4Percent of the Population (Ages 18+) Who Use the Internet at Home by Race/Ethnicity

Currrent Population Survey, 1997-2003

0%

20%

40%

60%

80%

100%

1997 1998 1999 2000 2001 2002 2003

White non-Latino

Latino

Black

Figure 5Percent of Children that Have a Home Computer by Race/Ethnicity

Current Population Survey, October 2003

85.5%

52.8% 52.6%47.1%

64.9%

73.5%

59.9%

77.4%

55.0%

81.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

White Black Latino Mexican PuertoRican

Cuban Central/South

American

OtherLatino

NativeAmerican

Asian

Figure 6Percent of Children that Have Access to the Internet at Home by Race/Ethnicity

Current Population Survey, October 2003

77.4%

41.4% 39.8%

33.9%

55.8%

64.4%

47.2%

61.4%

41.9%

72.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

White Black Latino Mexican PuertoRican

Cuban Central/South

American

OtherLatino

NativeAmerican

Asian

Figure 7Percent of the Population that Has Hi-Speed Internet Access at Home by Race/Ethnicity

Current Population Survey, October 2003

26.1%

13.9%12.4%

10.2%

18.4%

15.9% 15.6%16.7%

12.7%

33.9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

White Black Latino Mexican PuertoRican

Cuban Central/South

American

OtherLatino

NativeAmerican

Asian

Causes of the Digital Divide

How much of the digital divide is due to income differences?

How much is due to other factors, such as education?

Figure 8 Percent of the Population that Has a Home Computer by Income and Race

Current Population Survey, October 2003

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<$10,000 $10,000- $20,000 $20,000- $40,000 $40,000- $60,000 >$60,000

Income Level

White Black Latino

Figure 9 Percent of the Population that Has Access to the Internet at Home by Income and Race

Current Population Survey, October 2003

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<$10,000 $10,000- $20,000 $20,000- $40,000 $40,000- $60,000 >$60,000

Income Level

White Black Latino

Black Latino Mexican Cuban

Puerto Rican

Central/ South Amer.

Native Amer.

White/minority gap in home 0.244 0.242 0.296 0.224 0.139 0.170 0.199computer rate

Contributions from racialdifferences in:

Sex and age -4.6% -10.5% -9.6% 2.4% -14.4% -16.6% -10.5%

Marital status and 9.6% -0.2% -1.3% 3.8% 7.7% 0.2% 5.4%children

Education 9.4% 22.5% 21.3% 14.7% 32.1% 25.5% 13.3%

Income 27.4% 26.6% 24.3% 20.4% 45.2% 28.4% 36.2%

Region 3.8% -4.1% -4.3% 2.2% -1.3% -5.0% -5.6%

Central city status 0.3% -0.8% -0.5% -2.9% -1.3% -2.3% 4.2%

Employment / Occupation 2.8% 6.3% 6.3% 2.8% 4.0% 9.7% 4.4%

All included variables 48.6% 39.7% 36.1% 43.3% 72.0% 40.0% 47.4%

Explanations for Racial/Ethnic Disparities in Home Computer Rates

Consequences of the Digital Divide

Labor market (skills and job search).

Education

Communications, politics, health information, news, consumers, emergency information

Figure 12Work Computer and Internet Use by Education, United States

Current Population Survey, October 2003

16.1%

42.7%

61.9%

85.0%

59.6%

7.9%

27.1%

45.1%

74.5%

46.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Less Than High School High School Graduate Some College College Graduate All Workers

Percent Using Computer at Work Percent Using Internet at Work

Children and Access to Technology

Computers and the Internet are universal in the classroom.

Twenty million children do not have computers in their homes and twenty-five million children do not have access to the Internet at home.

Large ethnic and racial differences in home access.

Home and School Access to Computers and the InternetCurrent Population Survey and National Center for Educational Statistics

0%

20%

40%

60%

80%

100%

1997 1998 1999 2000 2001 2002 2003

Schools with Internet AccessInstructional Rooms with Internet Access

Home Computers

Home Internet Access

Educational Impacts of Access to Technology

Home computers may exert a positive influence on academic performance directly through the use of educational software and indirectly by facilitating the completion of school assignments and learning.

The use of home computers may also open doors to learning, encourage some teenagers to stay in school, reduce truancy and crime, and offer economic incentives for completing high school.

Figure 13School Enrollment among Children Ages 16-18

Current Population Survey, 2001

95.2%

85.4%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

Without Access to Home Computer With Access to Home Computer

Figure 14School Enrollment Differences from Access to Home Computers

Current Population Survey, 2001

9.8%

1.4%

7.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Unadjusted Rates Probit Model Bivariate Probit Model

Estimation Technique

Conclusions

The Digital Divide is large and does not appear to be disappearing soon.

Blacks, Latinos and Native Americans are much less likely to have access to computers, the Internet and broadband at home than are white, non-Latinos.

The Digital Divide also appears to be larger for children than for adults.

Income and education inequalities were found to be leading causes of the digital divide (Fairlie 2003, 2004).

The digital divide has important consequences for labor market and educational outcomes (Fairlie 2005 and Beltran, Das and Fairlie 2005).