[Air-L] The New Digital Divide - Shane Greenstein

[Joly MacFie]

https://pulse.internetsociety.org/blog/the-new-digital-divide

The New Digital Divide
[image: Picture of Shane Greenstein]
Shane Greenstein <https://pulse.internetsociety.org/blog?author=127>
Guest Author | Harvard Business School


<https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fpulse.internetsociety.org%2Fblog%2Fthe-new-digital-divide>

July 15, 2025
In short

   - A new study offers an unprecedentedly granular look at digital usage
   in the United States, including how people browse the Internet, use social
   media, create documents, and code software.
   - Areas with higher household incomes and greater educational attainment
   consistently showed higher digital engagement.
   - These findings challenge the assumption that digital divides disappear
   once basic broadband infrastructure is widely available.

The digital divide is typically understood as the gap between those with
access to Internet infrastructure and those without. My colleague’s recent
research, though, reveals that the real story goes deeper, highlighting
stark differences in how digital technologies are used.

This ‘new digital divide’ has significant consequences for social equality,
as it exacerbates existing disparities and creates new ones. It also alters
economic opportunities, as those with limited digital skills may be left
behind in the job market. Furthermore, it affects civic participation, as
those who are less digitally literate may struggle to engage in online
civic activities.
A Substantial Divide Exists Between Urban and Rural Communities

Our research (see paper <https://ssrn.com/abstract=4957386>), conducted in
partnership between the Microsoft AI for Good Lab, Harvard Business School,
and the Wharton School, offers an unprecedentedly granular look at digital
usage in the United States.

We used anonymized telemetry data from 40 million (non-business) Windows
devices in homes, collected during software updates. These data extend far
beyond traditional metrics, such as Internet connectivity or computer
ownership, delving into how people interact with technology. This includes
activities such as browsing the Internet, using social media, creating
documents, and coding software.

What emerged from our analysis is that a substantial divide exists between
urban and rural communities, not just in infrastructure, but also in our
measures of usage and proxies for digital literacy—how effectively and
creatively individuals use technology. To capture these differences, we
developed two distinct indices:

   - The Media and Information Composite Index (MCI) measures general
   computing and media usage, including activities such as browsing, word
   processing, and emailing.
   - The Content Creation and Computation Composite Index (CCI) measures
   specialized activities, including software development and graphic design.

Figure 1 demonstrates these geographical disparities, with urban areas
generally showing higher levels of usage than rural regions. However, even
within major metropolitan areas, such as Chicago (shown in the right
panel), substantial variations persist across different ZIP codes,
emphasizing that the digital divide is far more severe than infrastructure
differences might suggest (broadband availability is much more homogeneous
in comparison).
<https://pulse-dev-wp.internetsociety.org/wp-content/uploads/2025/07/maps_index.jpg>Figure
1 — Spatial distribution of media and information composite index, content
creation and computation composite index, and broadband availability. (A)
Media and information composite index across US countries (left) and
Chicago-Naperville-Elgin, IL-IN ZIP codes (right). (B) Content creation and
computation index across US countries (left) and Chicago-Naperville-Elgin,
IL-NL ZIP codes (right). (C) Broadband availability across US counties
(left) and Chicago-Naperville-Elgin, IL-IN ZIP codes (right).What Factors
Drive These Divides?

These findings challenge the assumption that digital divides disappear once
basic broadband infrastructure is widely available.

Some areas with good Internet infrastructure still experience surprisingly
low digital usage. Conversely, regions with robust digital skills can
leverage technology for economic and social advancement despite
infrastructural limitations.

In our analysis, income and education levels emerged as critical
influences. Areas with higher household incomes and greater educational
attainment consistently showed higher digital engagement on both indices.
This suggests that digital usage is closely tied to socioeconomic status,
reinforcing existing inequalities.

This approach means moving beyond the traditional policy focus on hardware
and connectivity. Policymakers, educators, and community organizations must
invest in digital literacy programs that cater to the diverse needs of
communities.

Furthermore, continuous measurement is critical to ensure that initiatives
effectively address real-world needs and reassure the audience about their
adaptability to changing technological landscapes. This includes
continuously monitoring digital usage trends.

By making our detailed indices publicly available
<https://github.com/microsoft/Consumption-of-Digital-Applications-Data-Set>,
we invite further research and policy formulation.
The Digital Divide is Evolving

Bridging this new divide requires understanding not just who has Internet
access, but how they use it.

Our findings (read paper <https://ssrn.com/abstract=4957386>) underscore
the need for localized strategies that prioritize education, training, and
ongoing support to harness technology’s potential for positive change.

Contributors: Mayana Pereira, Raffaella Sadun, Tambe Prasanna, Lucia Ronchi
Darre, Tammy Glazer, Allen Kim, Rahul Dodhia, and Juan Lavista-Ferres.

*Shane Greenstein
<https://www.linkedin.com/in/shane-greenstein-30891b6/> is a Martin
Marshall Professor of Business Administration at Harvard Business School*.

The views expressed by the authors of this blog are their own and do not
necessarily reflect the views of the Internet Society.



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