Do income distribution and socio-economic inequality affect ICT affordability? Evidence from Australian household panel data

The impact of information and communication technology (ICT) on human development depends on the distribution of income and affordability of ICT services. This study explores the responsiveness of ICT affordability to income distribution and socio-economic inequality. Applying a generalised linear mixed model and a random effects model based on Australian household panel data covering 2011–2017, this study finds that gross ICT affordability is positively associated with income distribution and socio-economic inequality. Interestingly, for low-income subgroups, inequality reveals to have a positive impact on ICT affordability, whereas for high-income household, the impact is reversed. These findings provide insights that are useful in the design of policies and strategies to promote ICT affordability and penetration.