The New Digital Divide

31 Pages Posted: 17 Sep 2024 Last revised: 26 Jun 2026

See all articles by Mayana Pereira

Mayana Pereira

Microsoft Corporation

Shane Greenstein

Harvard University - Business School (HBS)

Raffaella Sadun

Harvard University - Strategy Unit; London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Prasanna Tambe

Wharton School, U. Pennsylvania

Lucia Ronchi Darre

Microsoft Corporation

Tammy Glazer

Microsoft Corporation

Allen Kim

Microsoft Corporation

Rahul Dodhia

Microsoft Corporation

Juan Lavista-Ferres

Microsoft Research

Multiple version iconThere are 2 versions of this paper

Date Written: September 2024

Abstract

We build and analyze new metrics of digital usage that leverage telemetry data collected by Microsoft during operating system updates across forty million Windows devices in U.S. households. These measures of US household digital usage are much more comprehensive than those made available through any existing commercial or government survey. We construct representations of devices in ZIP codes and find evidence of significant variation in usage reflecting an urban-rural divide. We also show the existence of substantial disparities in usage even within narrowly defined Metropolitan Statistical Areas. Income and education correlate with these observed differences. These effects are large and suggest digital literacy gaps that extend beyond the availability of essential IT infrastructure at the local level. These findings call for interventions beyond the traditional focus on infrastructure access and address usage and skills development. The indices are made publicly available to support future research.

Suggested Citation

Pereira, Mayana and Greenstein, Shane and Sadun, Raffaella and Tambe, Prasanna and Ronchi Darre, Lucia and Glazer, Tammy and Kim, Allen and Dodhia, Rahul and Lavista-Ferres, Juan, The New Digital Divide (September 2024). NBER Working Paper No. w32932, Available at SSRN: https://ssrn.com/abstract=4957386

Mayana Pereira (Contact Author)

Microsoft Corporation ( email )

Shane Greenstein

Harvard University - Business School (HBS) ( email )

Raffaella Sadun

Harvard University - Strategy Unit ( email )

Harvard Business School
Soldiers Field Road
Boston, 02163
United States

HOME PAGE: http://people.hbs.edu/rsadun

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

HOME PAGE: http://cep.lse.ac.uk/_new/staff/person.asp?id=1758

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Prasanna Tambe

Wharton School, U. Pennsylvania ( email )

Philadelphia, PA 19104
United States

Lucia Ronchi Darre

Microsoft Corporation ( email )

Tammy Glazer

Microsoft Corporation ( email )

Allen Kim

Microsoft Corporation ( email )

Rahul Dodhia

Microsoft Corporation ( email )

Juan Lavista-Ferres

Microsoft Research ( email )

Redomond, WA 98052

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