Understanding the Trend to Mobile-Only Connections for Internet Access: A Decomposition Analysis
26 Pages Posted: 27 Apr 2017 Last revised: 15 Aug 2017
Date Written: April 25, 2017
Household internet access via a mobile-only connection increased from 8.86% in 2011 to 20.00% in 2015. This paper uses national data to model the propensity of a mobile-only connection via logistic regressions. An inter-temporal non-linear Blinder-Oaxaca decomposition is then used to determine the driving factors behind this trend. The results show that while changing characteristics over time account for less than 1% of the trend, behavioral relationships changed dramatically as specific groups were much more likely to be adopters of mobile-only in 2015. The primary behavioral relationships leading to increased mobile-only connections are those associated with age (50.55%), race/ethnic background (4.75%), and non-metro status (1.88%). The finding that these demographic groups are becoming more willing to adopt the internet via the mobile-only connection can have important implications for future broadband policy.
Keywords: Broadband, Decomposition, Internet, Technology adoption
JEL Classification: L86, O14, Q43
Suggested Citation: Suggested Citation