DIGITAL INEQUALITY AND ITS IMPACT ON INCOME INEQUALITY IN THE REGIONS OF UKRAINE
Abstract
The article analyzes the concept of digital inequality as the uneven distribution of basic digital services among different social groups. It is determined that at the current stage, the primary indicators of digital inequality are the level of access to the internet and mobile communication. It is established that access to the internet is a key service in addressing digital inequality, and when evaluating mobile communication, we also assess access to mobile internet according to relevant communication standards. At the same time, access to fixed internet is more challenging to evaluate in relation to specific individuals and can only be assessed by the number of connected households. An analysis of the relationship between access to mobile communication and mobile internet across regions in Ukraine and the level of disposable income was conducted. It is found that the impact of digital inequality on disposable income is greater than on the gross regional product per capita. It is determined that there is a direct correlation between the studied variables in Ukraine, and from a practical perspective, it is established that an increase in the number of households with internet access or active SIM cards by one unit would lead to an increase in disposable income by 581/582 UAH, respectively, which also indicates that the impact of both indicators of digital inequality is almost identical. As a result of the regression analysis, it is also established that there is a minimum level of internet and mobile communication accessibility necessary for the formation of disposable income. In other words, disregarding the specific quality and standards of the internet and mobile communication, it can be stated that access to the internet and mobile communication has become a basic service and an essential good. Therefore, since digital inequality is a factor in the interregional uneven distribution of income, to ensure a higher level of access to digital technologies, it is necessary to stimulate market operators to provide broadband internet services; expand the coverage of "high-speed" mobile internet (with a speed standard of 4G and above); and implement regional programs to equalize access to the internet and mobile communication networks.
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