Digital technology and regional income inequality

Are better institutions the solution

Bibliographic Data

ID12401442
AuthorsRoberto Antonietti (0000-0002-2172-4062, University of Padua), Chiara Burlina (0000-0002-1914-8772, University of Padua, corresponding author), Andrés Rodríguez-Pose (0000-0002-8041-0856, London School of Economics and Political Science)
Year2025
Volume104
Issue2
Pages100079-100079
Publication date2025-01-11
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenuePapers of the Regional Science Association (JOURNAL)
Journal identifiersISSN: 1056-8190 • E-ISSN: 1435-5957
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.pirs.2025.100079
OpenAlexW4406278458
LanguageEN
Citations received9
References cited76

In this paper, we examine the effect of regional digital technology (including computing, communication equipment, software, and databases) on income distribution at the regional level. We aim to fill a gap in existing research by exploring the moderating role of formal and informal institutions —such as bonding and bridging social capital— in shaping how digital technology affects income inequality across European NUTS2 regions from 2006 to 2016. The results indicate that regions with greater access to digital technology are prone to higher levels of income inequality. However, this negative link is mitigated by strong formal and informal institutions, particularly through improved government effectiveness and bridging social capital. The findings are robust to potential endogeneity concerns, as demonstrated by the instrumental variable approach adopted

Demographic economics · Digital divide · Economic geography · Economic growth · Economic inequality · Economics · Geography · Inequality · Information and Communications Technology · Regional science · Social inequality · World Wide Web · Computer Science · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Mathematics · Regional Development and Policy