`Digital divide' growing wider
Graph of report results
BY DAVID PLOTNIKOFF
Mercury News Staff Writer

http://www.sjmercury.com/business/tech/docs/net072898.htm

The Clinton administration's first statistical portrait of digital haves and
have-nots since the explosion of the Internet, expected to be released
today, shows that while home-computer use and online access have increased
dramatically across the board, some alarming disparities first noted in 1995
have deepened.

According to the study, obtained Monday by the Mercury News, blacks and
Hispanics overall are falling farther behind whites in computer ownership.
(Asian-American households were not broken out in the study.) The gap
between high-income and low-income households in computer ownership also has
widened.

The report by the Department of Commerce, the government's first detailed
look at the nation's wired and unwired in three years, comes as the
administration's Net-access initiatives -- such as the ``e-rate'' subsidy
for schools and libraries -- are coming under intense scrutiny from Congress
and taxpayer groups.

``Falling Through the Net II: New Data on the Digital Divide,'' commissioned
by Commerce's National Telecommunications and Information Administration, is
based on a Census Bureau survey of 48,000 homes in October 1997. It is a
corollary to the department's landmark ``Falling Through The Net,''
published in July 1995 and based on a 1994 survey.

The new study found that nationwide, 36.6 percent of respondents had home
computers, up from 24.1 percent in 1995. Twenty-six percent had a computer
equipped with a modem, up from 11 percent.


Income is key factor

A Commerce official involved in both studies said the data to be released
today could indicate that income, rather than race, may be the key factor in
technology adoption in coming years: ``We have exponentially more minorities
online now than we did three years ago, and some evidence that middle- and
upper-middle-class Hispanics and blacks are using these technologies. But
for low-income people, black or white, there's real cause for concern.''

Computer ownership is now at 19.4 percent for Hispanics and 19.3 for blacks,
while ownership among white households is 40.8 percent. The gap in PC
ownership between white and black households, which was 16.8 percentage
points in 1995, is now 21.5 points. The gap between white and Hispanic
households increased from 14.8 points to 21.4 points. Still, PC penetration
rates grew faster among black and Hispanic households than among white
households.

A statistically small set of households of ``other'' races, which includes
Asian-Americans and American Indians, had the highest proportion of PC
ownership, at 47 percent in the most recent study.

Some racial disparities in PC ownership existed regardless of income level.
Even at incomes higher than $75,000, whites were 12 percentage points more
likely to own computers than blacks. Yet, above the $75,000 level, use by
Hispanics and whites was within four percentage points.

As for online use, 21.2 percent of whites were plugged in, vs. 7.7 percent
of blacks and 8.7 percent of Hispanics. The ``other'' category again was
tops, at 25.2 percent. There was no comparable figure from the previous
study.

When broken down by income level, some disparities also expanded in the past
three years. The study said the gap in PC ownership between households
earning $10,000-$14,999 and those earning $50,000-$74,999 grew from 38.2
percentage points in 1995 to 47.7 points. In the current study, those
earning $50,000-$74,999 were nearly twice as likely to own a computer as
those earning $25,000-$34,999.

As in 1994, there were sharp correlations between educational attainment and
technology adoption. Nationally, college graduates were four times as likely
to have online access as high school graduates.

Data on computer use and online connections confirmed that a generational
gap persists. From 40 percent to 50 percent of people from 25 to 54 years
old owned PCs. But only 21 percent of those 55 and older did.

The figures for online use were similar: Those aged 25-54 reported
online-use rates between 22 and 26 percent. Of respondents 55 and older,
only 8.8 percent were online.


`Gaps haven't gone away'

Vanderbilt University business Professor Donna Hoffman, who recently
co-authored the only other major study of Net use and race, said the
Commerce figures should be a wake-up call to those who had assumed that
cyberspace would naturally come to reflect society as a whole over time.

``We found similar disparities in income, education and race,'' Hoffman
said. ``When we published our figures (in the journal Science) in April, we
got a number of interesting reactions. A lot of educators and community
activists said, `Thank God someone found the numbers to prove what we knew
all along.' And others said, `Why are you even bothering to do this? There
may have been a problem, but the gaps are getting better.' Well, it seems
that's not true. The gaps haven't gone away. This certainly supports the
steady stream of research that shows the digital divide is real.''


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