The asymmetric impact of digital infrastructure on income inequality: A panel quantile regression analysis of OECD countries
Vol. 18, No 4, 2025
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Hasan Tutar
Faculty of Communication, Bolu Abant Izzet Baysal University, Bolu, Türkiye; Research Methods Application Center, Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan Email: hasantutar@ibu.edu.tr, ORCID 0000-0001-8383-1464
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The asymmetric impact of digital infrastructure on income inequality: A panel quantile regression analysis of OECD countries |
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Yavuz Akçi
Faculty of Communication, Bolu Abant Izzet Baysal University, Bolu, Türkiye Email: yavuz.akci@ibu.edu.tr ORCID 0000-0001-6755-6650 Vendula Fialova
Faculty of Entrepreneurship and Law, Pan-European University, Prague, Czechia Email: vendula.fialova@peuni.cz ORCID 0000-0002-2368-0243 Kossa György
Doctoral School of Management and Business, Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary E-mail: kossa.gyorgy@unideb.hu ORCID 0000-0002-4404-2929 |
Abstract. This study investigates the asymmetric effects of digital infrastructure on income inequality across OECD countries. Using an unbalanced panel, income inequality is represented by the Gini index of disposable income, and digital infrastructure by broadband internet usage, across a sample of 38 OECD member states covering the years 2010-2023. The empirical strategy combines fixed-effects panel quantile regression with preliminary estimation assessments that account for cross-sectional dependence and non-stationarity. Distributional estimates are analyzed using panel causality tests. The magnitude of the effect decreases towards the upper tail, becoming statistically insignificant at the 90th percentile (Q90). This suggests a limited equalization capacity in high-inequality regimes. Dumitrescu-Hurlin causality tests support a unidirectional relationship from digital infrastructure to income inequality. The findings demonstrate that infrastructure expansion alone is not enough to deliver inclusive distributional gains. They show that infrastructure investment is also correlated with digital inclusion, skills development, and the quality of governance. |
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Received: November, 2024 1st Revision: October, 2025 Accepted: December, 2025 |
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DOI: 10.14254/2071-789X.2025/18-4/10 |
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JEL Classification: D31, O15, O33, C23 |
Keywords: digital infrastructure, income inequality, panel quantile regression, OECD countries, digital divide |











