Internet use and public programs participation: Evidence from Chile

Abstract

The interest for ICT-related issues has notably increased in the last decades, leading to a flourishing of studies on their impact on many dimensions. Despite the consensus about the importance of ICT effects at micro level, there is lack of analysis on the existence, magnitude and direction of these effects. This article aims to contribute to the literature by performing an analysis of the relationship between Internet use and information diffusion at household level in Chile. By using data from National Household Surveys, we estimate the effect of Internet use at household level on the probability of obtaining a scholarship for young students in the household. The results suggest that ICT use is significantly and positively correlated with the probability of primary students to be granted by a scholarship program, illustrating how ICT improves communication access and participation in social programs. Given that ICT diffusion is largely determined by socio-economic dimensions, the results also illustrate how ICT could reinforce pre-existing inequalities. This highlights the need for proactive public policies in addressing the digital divide.