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.
Liu, Yongzheng, "Internet and Income Inequality: A Research Note" (2017). ICEPP Working Papers. 172.