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Yongzheng Liu
''Internet and income inequality: A research note''
( 2017, Vol. 37 No.4 )
By using a sample of 51 developed and developing countries, this research note empirically examines the impact of internet diffusion on income inequality. To address the potential endogeneity issue of internet diffusion, I employ lightning density as an instrument for internet diffusion and use an instrumental variable method for the estimations. I find that internet diffusion significantly reduces income inequality. The results are robust across alternative specifications.
Keywords: Internet diffusion; Income inequality; Endogeneity
JEL: D6 - Welfare Economics: General
L8 - Industry Studies: Services: General
Manuscript Received : Aug 24 2017 Manuscript Accepted : Dec 04 2017

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