The Digital Divide and ICT Skills in New Zealand

The Digital Divide and ICT
Skills in New Zealand
John Gibson
Department of Economics
University of Waikato
WWW.MNGT.WAIKATO.AC.NZ/ICT

John Gibson
WWW.MNGT.WAIKATO.AC.NZ/ICT

Broad
Research Objective
• Identify the characteristics of groups who
fail to cross the digital divide
Specific
• Ethnic and regional gaps in access to the
internet
• Determinants of computer training
• Effects of gaps in computer training
WWW.MNGT.WAIKATO.AC.NZ/ICT

Data
• 12,000 people (age 10+) in the AC Nielsen
NetWatch Survey (July 2000 – June 2001)
– Distinguishes regular internet users (used in the
last 4 weeks) from irregular users (used in the
last year but not last 4 weeks ) and non-users
• 2001 Census of Population
– Asks whether the dwelling has internet access,
rather than about personal use of the internet
• 22,000 people (13,000 workers) in 1996
Education and Training Survey
– covers training in computing and other subjects
WWW.MNGT.WAIKATO.AC.NZ/ICT

% of ethnic group pop
70%
60%
50%
40%
30%
20%
10%
0%
Ethnic Gaps in Internet Use:
Regular Users
(4 weeks)
Never Used
Internet
European/Pakeha
Maori
Pacific Peoples
Other
WWW.MNGT.WAIKATO.AC.NZ/ICT

% of ethnic group pop
Ethnic Gaps in Access to Internet and Other
Communication Technology in Dwellings:
Census Results
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Telephone Internet Fax
European/Pakeha
Maori
Pacific Peoples
Other
WWW.MNGT.WAIKATO.AC.NZ/ICT

% of population
50
40
30
20
10
0
Regional Gaps in Access to
Internet : Census Results
Auckland Wellington Canterbury Rest of NZ
WWW.MNGT.WAIKATO.AC.NZ/ICT

Gaps in access to employer-
provided training
• Males more likely to receive training, for both
computing and other subjects
• Weak ethnic effects, no difference between
computing and other subjects
• Education raises likelihood of being trained,
especially in non-computer subjects
• Workers in AKL, WLG, Canterbury more likely to
get computer training than workers elsewhere,
less likely to get other types of training
WWW.MNGT.WAIKATO.AC.NZ/ICT

0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
-0.05
p

Results:
External Training
• Males less likely to receive training, especially for
computing
• Ethnic minorities less likely to receive training, for
both computing and other subjects (not for Maori)
• Education raises likelihood of being trained,
especially in non-computer subjects
• Employers and self-employed more likely to receive
training, especially in non-computer subjects
• People in AKL, WLG, Canterbury more likely to get
computer training but no more likely to get other
types of training than people in other regions
WWW.MNGT.WAIKATO.AC.NZ/ICT

1
0.8
0.6
0.4
0.2
0
-0.2
p

% increase in earnings
14
12
10
8
6
4
2
0
Gaps in computer training
contribute to wage gaps
Computing Other
Subjects
• Earnings function for
8300 full-time workers
to see the effect of
inhouse training
• Computer training is
associated with twice
the wage gain of
other subject matter
training
WWW.MNGT.WAIKATO.AC.NZ/ICT

Implications
• Location and ethnicity important
determinants of internet access and use
• Targeted interventions needed to raise
participation in computer training
– Previous education and location important
targeting attributes, mixed results for
ethnicity
– ICT skills matter, as shown by computer
training being associated with higher
earnings
WWW.MNGT.WAIKATO.AC.NZ/ICT