Internet, Inequality, and Regime Stability

Abstract

This study examines the link between income inequality and political instability, focusing on the moderating role of Internet penetration. Using data from over 120 countries (1996–2020), we find a conditional relationship: in low-Internet countries, higher inequality associates with lower instability, likely due to limited political awareness or collective action. In contrast, in highly connected societies, widespread Internet use amplifies economic disparities, increasing instability. Robustness checks, including conflict-related deaths and dynamic panel GMM, confirm these patterns. The results highlight digital connectivity as a key channel turning inequality into unrest, underscoring the need for policies targeting disparities in connected societies.