Internet Access and Inequality in Developing Countries: Roles of Gender Equality and Education

Abstract

As digital technologies spread rapidly across the developing world, their potential to shape equitable growth has drawn increasing attention. This study explores whether internet access can reduce income inequality and under what conditions. Utilizing the two-step system generalized method of moments (GMM) estimator with panel data from 125 developing countries spanning 1990 to 2021, the analysis reveals that greater internet access and mobile cellular subscriptions are associated with lower income inequality. Crucially, these inequality-reducing effects of the internet are significantly stronger in countries with higher female labor force participation and secondary school enrollment rates. The findings highlight the pivotal role of gender equality in unlocking the full potential of information and communication technologies (ICT). In societies where women have better access to economic and digital opportunities, the impact of the internet on reducing inequality is substantially amplified. By uncovering these conditional effects, this study provides new evidence on how digital inclusion, gender equity, and education intersect to promote more inclusive development. These insights carry important policy implications for achieving the Sustainable Development Goals.