Uncovering Regional Inequalities in Digitalization: A Multifaceted Measurement for Germany

Jonas Detemple and Alexandra Wicht

No e439g, SocArXiv from Center for Open Science

Abstract: The ongoing global digital transformation has significant implications for economies and societies, with potential benefits and challenges. This study addresses the critical need for a comprehensive measure of regional digitalization in Germany to better understand its impact on various aspects of life, including education, employment, and working conditions. Using confirmatory factor analysis (CFA), it introduces a multifaceted regional digitalization indicator at the administrative district level (NUTS-3) that incorporates digital infrastructure, culture, technology capacity, high-tech human capital, and digitalization-related innovativeness. The study reveals that digitalization varies significantly across regions. Urban regions tend to have higher digitalization levels, which are positively associated with economic productivity and high-skilled labor demand. Moreover, regional digitalization complements the established measure of regional automation potential, as the two are only slightly correlated, highlighting the complexity of regional disparities in the digital age.

Date: 2023-12-01
New Economics Papers: this item is included in nep-eur, nep-tid and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:e439g

DOI: 10.31219/osf.io/e439g

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