INTRODUCTION
ICT inequality begin at an early age. First, students from more advantaged backgrounds tend to have a greater exposure to digital technologies and tools, bothat school andat home, compared to those from less advantaged backgrounds. Second, this makes individuals from lower socioeconomic status backgrounds more likely to end upwith lower levels of digital competences. Third, given that digital skills are a fundamental asset in the modern knowledge- based economy—some degree of ICT proficiency is required even in low-skilled or semi-skilled occupations—these individuals face a higher risk of being excluded from the best jobs, possibly trapped in rapidly disappearing “routine jobs” (provided they can get one). Recent evidence from the Digital Economy and Society Index (DESI) (European Commission 2020) (see Figure 1) confirms that in most European countries low socioeconomic status is associated with low levels of digital skills. 3
The relationship between digital skills 1 and labor market outcomes (e.g., type and quality of employment, wages) has been extensively studied. The emerging consensus is that higher levels of information and communication technology (ICT) skills tend to correlate positively with more favorable labor market positions (see e.g., Machin and Van Reenen 1998; Fairlie 2006; DiMaggio and Bonikowski 2008; Acemoglu and Autor 2011; Atasoy et al. 2013; OECD 2013; Peng 2017). That is, digital literacy can help workers be more productive, earn higherwages, find a job after a period of unemployment, or start their own business. 2 Perhaps most importantly, while “basic” digital skills are found to enhance employability, advanced ICT skills lead to higher wages (e.g., Atasoy et al. 2013).
This evidence raises concerns about the extent and the consequences of the digital divide, especially if patterns of
Figure 1: Percentage of individuals with low digital skills by income quartile
Household income
Bottom quartile
Top quartile
40
30
20
10
Source: The underlying data are taken from Eurostat’s ICT survey of households and individuals (Eurostat 2020).
Note: For Latvia the percentage of individuals with low digital skills in the top income quartile (blue dot) coincides with the value in the bottom quartile (red dot).
1. In this brief, the terms “skills” and “competences” are used interchangeably. 2. It should be noted that indicators of digital skills employed in the cited research are quite diverse, ranging from access to a personal computer at home to patterns of internet use or specific measures of computer problem-solving ability. Also, note that the studies are largely observational in nature and, as such, do not necessarily specify a causal link from having a given level of digital skill to a position on the labor market. 3. The low level of skills reported in Figure 1 refers to a composite measure of digital skills derived from indicators of proficiency in four major domains: (a) information, (b) communication, (c) creative content, and (d) problem solving. The underlying data come from Eurostat’s survey, ICT usage in households and by individuals (Eurostat 2020). For each of the major domains, participants in the survey are asked questions about computer and internet activities performed within the three months prior to the survey; for each domain, four to seven activities are selected. The objective is to distinguish between computer and internet users who have “basic” skills and those who don’t, rather than precisely measure individuals’ proficiency in these areas. A person is classified as having low level of digital skills if they report to have performed none of the indicated activities in up to three of the four major domains; if the person hasn’t performed any activities in all domains, they are classified as having no digital skills. Further details concerning how the indicator of digital skills is computed can be found in the methodology section of the Digital Economy and Society Index (DESI). Note also that the four domains listed above, along with safety, are core competences in the JRC Digital Framework for Citizens (DIGCOMP) (Carretero et al. 2017).
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