Inequalities in hourly wages of Chilean entrepreneurs: The role of internet access and gender, educational, and territorial gaps
DOI:
https://doi.org/10.22370/pe.2025.18.5103Keywords:
Entrepreneurship, Internet Access, Wage GapsAbstract
The advent of the Internet has benefited humanity across multiple dimensions, including increased business productivity and access to new markets. This study examines the effect of Internet access on hourly earnings among entrepreneurs in Chile, incorporating an inequality perspective based on gender, educational attainment, age, and geographic location. Using representative microdata from the 2022 CASEN Survey, the results reveal that connected entrepreneurs earn significantly higher incomes than those without digital access, with an average increase close to 60%. However, these benefits are not distributed equitably. Relative improvements are greater among women and older adults, yet they do not suffice to close existing structural gaps. Likewise, the highest economic returns are concentrated among individuals with higher education and those residing in urban areas, while the effects are more modest in rural contexts or among individuals with lower human capital. In this regard, digital connectivity functions more as an amplifier of preexisting advantages than as a redistributive mechanism. The study underscores the urgency of implementing public policies that promote digital inclusion with an intersectional and territorial focus, capable of ensuring that the benefits of technology effectively reach groups historically excluded from economic development.
Downloads
References
Card, D., & DiNardo, J. (2002). Broadband and the internet: The impact on wages and inequality. Journal of Economics and Technology, 25(3), 45–67.
Du, H., Zhou, N., Cao, H., Zhang, J.-T., Chen, A., & King, R. B. (2021). Economic Inequality is Associated with Lower Internet Use: A Nationally Representative Study. Social Indicators Research, 155(3), 789–803. https://doi.org/10.1007/S11205-021-02632-8
Duggi, N., Bhadri, S., & Varala, C. R. (2025). Gaps in the Grid: Access and the Digital Inequality Crisis. 152–162. https://doi.org/10.9734/bpi/mono/978-93-48859-10-5/ch13
Goss, E. P., & Phillips, J. M. (2002). The impact of information technology on wages and wage inequality. Journal of Labor Research, 23(3), 464–485.
Kuhn, P., & Mansour, H. (2014). Is Internet job search still ineffective? The Economic Journal, 124(581), 1213–1233.
Kularski, C. M. (2012). The Digital Divide as a Continuation of Traditional Systems of Inequality.
Li, X., Zhang, Y., & Wang, J. (2023). The impact of internet usage on farm household income: The moderating role of aging. Sustainability, 15(19), 1–17. https://doi.org/10.3390/su15197934
Matracia, M., Rahman, A. U., Wang, R., Kishk, M. A., & Alouini, M. (2023). Bridging the Digital Divide (pp. 113–139). Springer Vienna. https://doi.org/10.1007/978-3-031-37920-8_5
Martin, D. A. (2018). U-shaped wage curve and the Internet: The Colombian case. Estudios de Economía, 45(2), 173–188.
Nipo, D. T., Lily, J., Fabeil, N. F., & Jamil, I. A. A. (2024). Transforming rural entrepreneurship through digital innovation: A review on opportunities, barriers and challenges. Journal of Management and Sustainability, 14(2), 114. https://doi.org/10.5539/jms.v14n2p114
Peng, X., Zhang, J., & Peng, G. (2025). The impact of internet use on residents’ income in China: Evidence from the Chinese General Social Survey. China Finance and Economic Review, 1(1), 97–100.
Saeed, S. A., Abas, S. R., & Abdalkarim, N. B. (2023). Effect of the Internet on Enhancing Marketing among Business Organizations. https://doi.org/10.31098/ijmadic.v1i2.175
Si, X., & Li, M. (2023). Impact of the internet use on informal workers’ wages: Evidence from China. PLOS ONE, 18(5), e0285075. https://doi.org/10.1371/journal.pone.0285075
Ţurcan, R., Turcanu, D. S., & Ciubuc, A. (2023). The impact of Internet access on economic development. https://doi.org/10.52326/csd2023.24
Yunga, F., et al. (2023). El efecto de la tecnología en la desigualdad de ingresos. Implicaciones de la brecha digital: evidencia para los países miembros de la OCDE. Contaduría y Administración, 68(1), 260–288.
Zhao, X., Jiao, Y., & Wu, D. (2022). The impact of Internet use on labor wage distortions: Empirical Evidence From China. SAGE Open, 12(2), https://doi.org/10.1177/21582440221099290
Downloads
Published
How to Cite
Issue
Section
License
Those authors who have publications with this journal accept the following terms:
1.- Authors will retain their copyright and grant the journal the right of first publication of their work, which will simultaneously be subject to the Creative Commons Attribution License (CC BY-NC-ND 4.0 International) https://creativecommons.org/licenses/by-nc-nd/4.0/deed.es which allows third parties to share, copy and redistribute the material in any medium or format.
- Attribution: credit must be given appropriately, provide a link to the license, and indicate if changes have been made. It may be done in any reasonable manner, but not in such a way as to suggest that the use is supported by the licensor.
- Non-Commercial: No use of the material may be made for commercial purposes.
- No Derivatives: Any remix, transformation or creation from the material, the modified material may not be distributed.
- No Additional Restrictions: No legal terms or technological measures may be applied that legally restrict others from making any use permitted by the license.
2.- Authors may adopt other non-exclusive license agreements for distribution of the published version of the work (e.g., depositing it in an institutional telematic archive or publishing it in a monographic volume) as long as the initial publication in this journal is indicated.
3.- Authors are allowed and encouraged to disseminate their work through the Internet (e.g., in institutional telematic archives or on their web page) before and during the submission process, which can produce interesting exchanges and increase citations of the published work. (See The Open Access Effect).