Management Information Systems Quarterly
Abstract
How do technology resources such as computer ownership help create opportunity equality and facilitate income mobility? This is an important question because opportunity constraint, or the lack of opportunity equality, often manifests in low income mobility in many countries. This study addresses this question by examining the spillover effects of computer ownership of households in terms of household income mobility considering spatial proximity and social proximity. Drawing on knowledge spillovers theory, we hypothesize that households experience upward income mobility due to increased computer ownership among households in spatial proximity. Further, drawing on social capital theory, we hypothesize that households experience higher upward mobility due to increased computer ownership among households in the region that are socially proximate or in the same caste. Our empirical analysis of data from over 32,000 households across all states in India from two waves (2005 and 2011) of the Indian Human Development Survey supports our hypotheses. Our exploratory analyses suggest that households in regions with high social harmony experience higher upward income mobility from increased computer ownership among households in the region. We also found that increased computer ownership among households in the region helps households belonging to disadvantaged castes overcome low income mobility. Overall, the study shows how the returns to computer ownership in terms of household upward income mobility go beyond private returns, and spill over to other households in spatial proximity, particularly to those belonging to the same caste. A key implication for policymakers is to use twin levers of social harmony and technology resources to create opportunity equality to facilitate income mobility, instead of focusing solely on technology resources.