Book Description

This is a study of the influence of human capital in the, households' diffusion of Information Technologies (IT), in particular, computers and the Internet; and their potential benefits and costs among teenagers. The first part develops a theoretical model to understand the importance of human capital for the households' computer and Internet adoption. Urban and rural households select the technology choice that maximizes their utility, given their education, the basic skills needed to use a computer and the market prices. Firms compete as in a standard Cournot fashion. As an illustration of the model, data from Guatemalan households is analysed. The second part analyses the importance of education, among other factors, in the diffusion process of computers and Internet among British households using a multivariate dynamic random effects pro bit model that distinguishes households that are at risk from adopting IT technologies, from those at risk of staying as users. This part includes counterfactual simulations to highlight the importance of human capital in the IT diffusion among households. The third part studies the potential effects of computer access on English teenagers. Firstly, it is analysed if IT access at home and at school are beneficial for the academic outcomes of students, as most children tend to believe, and also if these technologies motivate them to study beyond compulsory education. Secondly, this chapter explores if IT technologies are affecting their plans, risk behaviour, and socialization. The main findings suggest that human capital has played an important role in the computer and Internet diffusion among households. Regarding the academic outcomes, small academic benefits are found from computer home access, but no effects are found from computer use at school. No evidence is found that suggests computer access motivates students to study beyond compulsory education. Finally, computers appear to have negative effects on teens' risk behaviour.