The impact of digital inequality on population income in Russian regions: an analysis using the generalized method of moments

Anastasia A. Kurilova and Oksana M. Syardova
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Anastasia A. Kurilova: Togliatti State University
Oksana M. Syardova: Togliatti State University

Siberian Journal of Economic and Business Studies, 2025, vol. 14, issue 3, 32-58

Abstract: In the conditions of increasing digitalization of the economy, the problem of digital inequality is becoming particularly relevant, especially at the regional level. The present study is aimed at quantifying the impact of digital inequality on household incomes in the subjects of the Russian Federation. The generalized method of moments (GMM) is used as the main method of analysis, which allows us to eliminate endogeneity problems characteristic of the relationship between income and the level of digitalization. Using panel data for 73 Russian regions for the period 2014-2022, we estimate the impact of various indicators of digital accessibility (fixed and mobile broadband access, level of internet penetration) on real, median and average per capita incomes of the population. The results show a statistically significant positive impact of digital access, especially mobile infrastructure, on household incomes, with differences in the strength and direction of the effects depending on the income indicator used. The paper emphasizes the importance of taking into account macroeconomic factors (GDP, inflation, consumer spending) when interpreting the results and designing digital development policies.

Keywords: digital divide; household income; generalized method of moments; digitalization; broadband access; principal component analysis; digital divide index; Russia (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:cxm:rusebs:14:3:2025:32-58

DOI: 10.12731/3033-5973-2025-14-3-304

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