Economic crisis and benefits of the Internet: differentiated Internet usage by employment status

Using data from the Spanish Survey on Equipment and Use of ICTs in Households for 2007-2011, this paper evaluates the effect of employment status on the diffusion of the Internet among the labor force. We use a bivariate probit with sample selection model to account for a potential selection bias that arises because online usage is only observed for Internet users. Our results show that, controlling for income, employment influences online adoption and usage, and we find evidence of a digital divide in adoption and usage by education and age among the labor force. Employed individuals are more likely to have accessed the Internet and used it more frequently than the unemployed and for different activities. However, conditional on adoption, they do not use the Internet for more personal activities. These findings suggest that firms promote and subsidize Internet access, but this sponsored access does not translate into more personal use.