The effect of Internet on income inequality

This research makes an inquiry into the effects of Internet on within country income inequality. Using data from the World Development Indicators, the Standarized World Income Inequality Database and the World Income Inequality Database an empirical model is estimated. The outcome of these models is that Internet has an increasing effect on income inequality. It is argued that this is due to (social) globalization and the fact that some people better utilize the capacities of the Internet than others.