Towards conceptualization and quantification of the digital divide

ABSTRACT The digital divide gained new importance since the outbreak of COVID-19 pandemics. However, the phenomenon is far from being fully conceptualized or effectively measured. The key question, whether digital divide is a mere extension of other social inequalities, or it has significant new meaning, remains largely unanswered; a reason is the lack of effective instruments of quantitative study of the phenomenon that would capture its complex nature. The present paper addresses both conceptualizing and measurement issues, suggesting that separation of supply- and demand-side considerations is crucial in understanding the digital divide and introducing a composite Digital Life Index, measures separately the digital supply and demand across seven independent dimensions. The Index is based on Internet-borne data, a distinction from traditional research approaches that rely on official statistics or surveys. Though the empiric part of the paper is focused on the sub-national digital divide in Russia we argue that its methodology can be applied on many other levels and its conceptual findings are relevant to understanding the phenomenon globally. The hierarchical regression analysis is used to determine the relative importance of factors like income, human capital, and policy in shaping the digital divide. The result of the analysis suggests that the digital divide is driven more by the differences in demand than in supply; the role of income is insignificant, and the quality of policy and human capital is the key determinant of the divide. The paper advances the existing conceptual and methodological literature on the issue and can also inform practical decision-making regarding the strategies of national and regional digital development.