FALLING THROUGH THE NET: TOWARD DIGITAL INCLUSION A Report on Americans' Access to Technology Tools October 2000 U.S. Department of Commerce Economic and Statistics Administration National Telecommunications and Information Administration THE SECRETARY OF COMMERCE Washington, DC 20230 The digital economy is moving our Nation toward greater prosperity. Our goal at the Commerce Department is to ensure that all Americans ­ regardless of age, income, race, ethnicity, disability, or geography ­ gain access to the technological tools and skills needed in the new economy. Falling Through the Net: Toward Digital Inclusion is a key part of the Department's ongoing efforts to promote full participation in the digital economy. It is important for our Nation to measure and analyze how the digital economy is affecting its citizens. I am pleased that the data in this report show that, overall, our Nation is moving toward full digital inclusion. The number of Americans who are utilizing electronic tools in every aspect of their lives is rapidly increasing. However, a digital divide still remains. The report shows that not everyone is moving at the same speed, and identifies those groups that are progressing more slowly. The report also is rich with insights into how Americans are gaining access to key technologies, and how they are using such tools. With this information, we can better target and enact policies and programs to close the disparities in access to computers and the Internet that still are being experienced by some in our Nation. I applaud the many public and private sector efforts that are helping Americans achieve greater access to the tools of the digital economy. We are rapidly becoming a digital Nation. We know that to not have access to such tools means to miss out on tremendous economic and educational opportunities. This report shows us that much work is left to be done. The Commerce Department looks forward to continuing to work with the many public and private sector organizations that are striving to ensure greater digital inclusion for everyone. Norman Y. Mineta FALLING THROUGH THE NET: TOWARD DIGITAL INCLUSION National Telecommunications Economic and Statistics Administration and Information Administration Gregory L. Rohde, Assistant Secretary Robert Shapiro, Under Secretary for for Communications and Information Economic Affairs JOINT PROJECT TEAM for NTIA for ESA Kelly K. Levy, Associate Administrator, Lee Price, Deputy Under Secretary for Office of Policy Analysis and Development Economic Affairs James McConnaughey, Senior Economist Patricia Buckley, Senior Policy Advisor Wendy Lader, Senior Policy Advisor Sabrina Montes, Economist Art Brodsky, Director of Communications George McKittrick, Economist Sandra Laousis, Telecommunications Gwendolyn Flowers, Chief Economist Policy Analyst Jeffrey Mayer, Director of Policy Development JOINT PROJECT CONTRIBUTORS for NTIA for ESA Kathy Smith, Chief Counsel Jane Molloy, Director, Office of Policy Analysis Milton Brown, Deputy Chief Counsel Laurence Campbell, Senior Regulatory Policy Economist Steve Saleh, Program Officer Sandra Cooke, Economist Wayne Ritchie, Management and Program Analyst Lan Chu, Law Clerk U.S. Bureau of the Census Demographic Surveys Division Technologies Management Office Population Division Ronald R. Tucker Adelle Berlinger Judith Eargle Andrew Stevenson Eric Newburger Greg Weyland L. Dinah Flores John M. McNeil Tim J. Marshall Aileen Bennett FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page v TABLE OF CONTENTS INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv PART I: HOUSEHOLD ACCESS TO COMPUTERS AND THE INTERNET . . . . . . . . . . . . . . . . . 1 Overall Household Findings: The Nation Moves Toward Digital Inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Digital Inclusion Proceeds Unevenly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Geography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Race and Ethnicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Household Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Households With Computers and Internet Access, by State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 A New Dimension: High Speed Internet Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Non-Internet Households . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Why Households with Computers Have Never Had Internet Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Why Households with Computers Have Discontinued Internet Access . . . . . . . . . . . . . . . . . . . . . . . . . . 27 PART II: USE OF THE INTERNET BY INDIVIDUALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Internet Use Among Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Race and Ethnicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Educational Attainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Location of Internet Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Locations of Internet Access Outside the Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Online Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Online Activities of Home Internet Users . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Online Activities of Outside the Home Internet Users . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 PART III: INTERNET ACCESS AND COMPUTER USE AMONG PEOPLE WITH DISABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Exploring the Populations with Disabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Race and Ethnicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Employment Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Access, Use, and Disability: 16-24 Year Olds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Access, Use, and Disability: 25-49 Year Olds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Access, Use, and Disability: 50-64 Year Olds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Access, Use, and Disability: 65 Year Olds and Older . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 CONCLUSION - A LOOK AHEAD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 National Telecommunications and Information Administration Economics and Statistics Administration Page vi FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Current Population Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Survey of Income and Program Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 BOXES Box II-1 The Relationship Between the Household- and Person-based Measures . . . . . . . . . . . . . . . . . . . . . 35 Box III-1 The Survey on Income and Program Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Box III-2 Building a Disability Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 FIGURES Figure I-1 Percent of U.S. Households with a Computer and Internet Access, Selected Years . . . . . . . . . . . . . . 1 Figure I-2 An Illustrative S Curve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Figure I-3 Percent of U.S. Households with Internet Access, by U.S., Rural, Urban, and Central Cities, 1998 and 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Figure I-4 Percent of Rural Households with Internet Access, by Income, 1998 and 2000 . . . . . . . . . . . . . . . . . 5 Figure I-5 Percent of U.S. Households with a Computer, by U.S., Rural, Urban, and Central City Areas, 1994, 1997, 1998, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Figure I-6 Percent of U.S. Households with Internet Access, by Income, 1998 and 2000 . . . . . . . . . . . . . . . . . . 8 Figure I-7 Percent of U.S. Households with a Computer, by Income, 1998 and 2000 . . . . . . . . . . . . . . . . . . . . 10 Figure I-8 Percent of U.S. Households with Internet Access, by Education, 1998 and 2000 . . . . . . . . . . . . . . . 11 Figure I-9 Percent of U.S. Households with Home Internet Access by Income and Education, 1998 and 2000 12 Figure I-10 Percent of U.S. Households with Internet Access, by Race/Hispanic Origin, 1998 and 2000 . . . . . . 13 Figure I-11 Rate of Growth of Internet Penetration, by Race/Hispanic Origin, 1998 and 2000 . . . . . . . . . . . . . . . 14 Figure I-12 Income and Education Differences Account for Half of the Gap between Blacks and Hispanics and the National Average . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Figure I-13 Percent of U.S. Households with a Computer, by Race/Hispanic Origin, 1998 and 2000 . . . . . . . . . 16 Figure I-14 Percent of U.S. Households with a Computer, by Family Type, 1998 and 2000 . . . . . . . . . . . . . . . . 18 Figure I-15 High Speed Internet Access, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Figure I-16 High Speed Internet Access, By U.S., Rural, Urban, and Central Cities, Percent of U.S. Households with Internet Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page vii Figure I-17 Reasons for U.S. Households with a Computer/Web TV Never Accessing the Internet, Percent Distribution, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Figure I-18 Reasons for U.S. Households Discontinuing Internet Use, Percent Distribution, 2000 . . . . . . . . . . . 28 Figure II-1 Different Perspectives on Internet Access and Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Figure II-2 Broad Increases in Internet Use Since 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Figure II-3 Internet Use by Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Figure II-4 Internet Use by Race/Ethnicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Figure II-5 Household Access Rates by Race/Ethnicity Do Not Closely Track Internet Use by Persons . . . . . . . 38 Figure II-6 Internet Use by Gender and Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Figure II-7 Internet Use by Gender and Race/Ethnicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Figure II-8 Internet Use Rates by Educational Attainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Figure II-9 Internet Use by Age Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Figure II-10 Internet Use by Income, Age 18-24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Figure II-11 Internet Use Age 25-49 and Labor Force Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Figure II-12 Internet Use Age 50+ and Labor Force Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Figure II-13 Internet Access by Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Figure II-14 Internet Use by Location and Race/Ethnicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Figure II-15 Online Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Figure II-16 The Percent of Internet Users Searching for Jobs on the Internet Declines as Income Increases . . . 50 Figure III-1 Internet Access by Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Figure III-2 Personal Computer Use Experience by Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Figure III-3 Regular Users of PCs by Location and Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Figure III-4 Income Distribution for Persons with a Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Figure III-5 Income Distribution for Persons without a Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Figure III-6 Age Distribution for Persons with a Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Figure III-7 Age Distribution for Persons without a Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Figure III-8 Employment Status Distribution for Persons with a Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Figure III-9 Employment Status Distribution for Persons without a Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Figure III-10 Internet Access at Home, by Income and Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Figure III-11 Regularly Uses a PC, by Income and Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Figure III-12 Internet Access at Home, by Race/Ethnicity and Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . 70 Figure III-13 Regularly Uses a PC, by Race/Ethnicity and Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . 70 Figure III-14 Internet Access at Home, by Age and Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 National Telecommunications and Information Administration Economics and Statistics Administration Page viii FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure III-15 Regularly Uses a PC by Age and Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Figure III-16 Internet Access at Home, by Employment and Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . 72 Figure III-17 Regularly Uses a PC, by Employment and Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Figure III-18 Internet Access at Home by Gender and Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Figure III-19 Regularly Uses a PC by Gender and Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Figure III-20 Internet Access Among 16-24 Year Olds, by Disability Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Figure III-21 Personal Computer Use Experience Among 16-24 Year Olds, by Disability Status, 1999 . . . . . . . . . 76 Figure III-22 Internet Access Among 25-49 Year Olds, by Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . 78 Figure III-23 Personal Computer Use Experience Among 25-49 Year Olds, by Disability Status, 1999 . . . . . . . . . 78 Figure III-24 Internet Access Among Employed 25-49 Year Olds, by Disability Status, 1999 . . . . . . . . . . . . . . . . 79 Figure III-25 Personal Computer Use Experience Among Employed 25-49 Year Olds, by Disability Status, 1999 79 Figure III-26 Internet Access Among 50-64 Year Olds, by Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . 81 Figure III-27 Personal Computer Use Experience Among 50-64 Year Olds, by Disability Status, 1999 . . . . . . . . . 81 Figure III-28 Internet Access Among 65 and Older, by Disability Status, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Figure III-29 Personal Computer Use Experience Among 65 and Older, by Disability Status, 1999 . . . . . . . . . . . 83 TABLES Table I-A Percent of Households with Computers, by State: 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Table I-B Percent of Households with Internet Access, by State: 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Table I-1 Percent of Households with a Computer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Table 1-2 Percent of Households with Internet Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Table II-1 Internet Use Individuals Age 3 and Older . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Table II-2 Internet Use Individuals Age 3-8 Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Table II-3 Internet Use Individuals Age 9-17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Table II-4 Internet Use Individuals Age 18-25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Table II-5 Internet Use Individuals Age 25-49 In the Labor Force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Table II-6 Internet Use Individuals Age 25-49 Not in the Labor Force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Table II-7 Internet Use Individuals Age 50+ In the Labor Force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Table II-8 Internet Use Individuals Age 50 + Not in the Labor Force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Table II-9 Reconciliation of Household Access and Person Internet Use Rates for 2000 . . . . . . . . . . . . . . . . . 60 Table III-1 Disability Status of Persons 16 and Above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Table III-2 Population Distribution, by Age and Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page ix Table III-3 Internet Access and Computer Use by 16-24 Year Olds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Table III-4 Internet Access and Computer Use by 25-49 Year Olds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Table III-5 Internet Access and Computer Use by 50-64 Year Olds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Table III-6 Internet Access and Computer Use by 65 Year Olds and Older . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Table III-7 Individuals 16 and Over . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Table III-8 Internet Access and Computer Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Table III-9 Disability, by Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 APPENDIX Figure A1 Percent of U.S. Households with a Computer and Internet Access 1994, 1997, 1998, 2000 . . . . . . . 94 Figure A2 Percent of U.S. Households with a Computer By U.S., Rural, Urban, and Central City Areas, 1994, 1997, 1998, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Figure A3 Percent of U.S. Households with a Computer By Income, By U.S., Rural, Urban, and Central City Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Figure A4 Percent of U.S. Households with a Computer By Race/Hispanic Origin, By U.S., Rural, Urban, and Central City Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Figure A5 Percent of U.S. Households with a Computer By Income, By Race/ Hispanic Origin, 2000 . . . . . . . . 96 Figure A6 Percent of U.S. Households with a Computer By Education, By U.S., Rural, Urban, and Central City Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Figure A7 Percent of U.S. Households with a Computer By Household Type, By U.S., Rural, Urban, and Central City Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Figure A8 Percent of U.S. Households with Internet Access By U.S. Rural, Urban and Central City Areas, 1998 and 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Figure A9 Percent of U.S. Households with Internet Access By Income, By U.S., Rural, Urban, and Central City Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Figure A10 Percent of U.S. Households with Internet Access By Race/Hispanic Origin, By U.S., Rural, Urban, and Central City Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Figure A11 Percent of U.S. Households with Internet Access By Income, By Race/Hispanic Origin, 2000 . . . . . 99 Figure A12 Percent of U.S. Households with Internet Access By Education, By U.S., Rural, Urban, and Central City Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Figure A13 Percent of U.S. Households with Internet Access By Household Type, By U.S., Rural, Urban, and Central City Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 Figure A14 Percent of U.S. Households with Internet Access By Age, By U.S., Rural, Urban, and Central City National Telecommunications and Information Administration Economics and Statistics Administration Page x FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 Figure A15 Percent of U.S. Households with High-Speed Internet Access, 2000 . . . . . . . . . . . . . . . . . . . . . . . . 101 Figure A16 Percent of U.S. Households with High-Speed Internet Access By Technology and Age, 2000 . . . . 101 Figure A17 Percent of U.S. Households with High-Speed Internet Access By Region, 2000 . . . . . . . . . . . . . . . 102 Figure A18 Percent of U.S. Households with High-Speed Internet Access By Income, 2000 . . . . . . . . . . . . . . 102 Figure A19 Percent of U.S. Households with High-Speed Internet Access By Education, 2000 . . . . . . . . . . . . 103 Figure A20 Percent of U.S. Households with High-Speed Internet Access By Age, 2000 . . . . . . . . . . . . . . . . . 103 Figure A21 Percent of U.S. Households with High-Speed Internet Access By Race/Hispanic Origin, 2000 . . . 104 Figure A22 Percent of U.S. Households with High-Speed Internet Access By Type of Household, 2000 . . . . . 104 Figure A23 Percent of U.S. Persons Using the Internet By Location, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Figure A24 Percent of U.S. Persons Using the Internet By Income, By Location, 2000 . . . . . . . . . . . . . . . . . . 105 Figure A25 Percent of U.S. Persons Using the Internet By Race/Hispanic Origin, By Location, 2000 . . . . . . . 106 Figure A26 Percent of U.S. Persons Using the Internet At Home By Race/Hispanic Origin, By U.S., Rural, Urban, and Central City Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Figure A27 Percent of U.S. Persons Using the Internet Outside the Home By Race/Hispanic Origin, By U.S., Rural, Urban, and Central City Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Figure A28 Percent of U.S. Persons Using the Internet By Education, By Location, 2000 . . . . . . . . . . . . . . . . 107 Figure A29 Percent of U.S. Persons Using the Internet, By Household Type, By Location, 2000 . . . . . . . . . . . 108 Figure A30 Percent of U.S. Persons Using the Internet, By Age, By Location, 2000 . . . . . . . . . . . . . . . . . . . . . 108 Figure A31 Percent of U.S. Persons Using the Internet, By Gender, By Location, 2000 . . . . . . . . . . . . . . . . . . 109 Figure A32 Percent of U.S. Persons Using the Internet Outside the Home By Selected Places, By U.S., Rural, Urban, and Central City Areas, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Figure A33 Percent of U.S. Persons Using the Internet Outside the Home By Income, By Selected Places, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Figure A34 Percent of U.S. Persons Using the Internet Outside the Home By Race/Hispanic Origin, By Selected Places, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Figure A35 Percent of U.S. Persons Using the Internet Outside the Home at Schools (K-12) By U.S., Rural, Urban, and Central City Areas By Race/Hispanic Origin, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Figure A36 Percent of U.S. Persons Using the Internet Outside the Home at Work By U.S., Rural, Urban, and Central City Areas, By Race/Hispanic Origin, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Figure A37 Percent of U.S. Persons Using the Internet Outside the Home By Education, By Selected Places, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page xi Figure A38 Percent of U.S. Persons Using the Internet Outside the Home By Household Type, By Selected Places, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Figure A39 Percent of U.S. Persons Using the Internet Outside the Home By Gender, By Selected Places, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Figure A40 Percent of U.S. Persons Using the Internet Outside the Home By Selected Places, By Employment Status, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Figure A41 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Income, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Figure A42 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Race/Hispanic Origin, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Figure A43 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Education, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Figure A44 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Household Type, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Figure A45 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Age, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Figure A46 Percent of U.S. Persons Using the Internet At Home By Type of Use, 2000 . . . . . . . . . . . . . . . . . . 116 Figure A47 Percent of U.S. Persons Using the Internet At Home By Income, By Type of Use, 2000 . . . . . . . . 117 Figure A48 Percent of U.S. Persons Using the Internet At Home By Race/Hispanic Origin, By Type of Use, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Figure A49 Percent of U.S. Persons Using the Internet At Home By Education, By Type of Use, 2000 . . . . . 118 Figure A50 Percent of U.S. Persons Using the Internet At Home By Type of Use, By Employment Status, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Appendix Table 1 Reasons for Discontinuing Home Internet Use, by Selected Characteristics of Reference Person, Total, Urban, Rural, Central City, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 National Telecommunications and Information Administration Economics and Statistics Administration Page xii FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page xiii INTRODUCTION Robert J. Shapiro Under Secretary for Economic Affairs Administrator, Economics and Statistics Administration Gregory L. Rohde Assistant Secretary for Communications and Information Administrator, National Telecommunications and Information Administration This is the fourth report in the Commerce Department series of studies, Falling Through the Net. The previous three were focused on the theme of the "Digital Divide," the concept that the society should not be separated into information haves and information have-nots. With this report, we move into a new phase of our information-gathering and policy-making by recognizing the phenomenal growth that has taken place in the availability of computing and information technology tools, tempered by the realization that there is still much more to be done to make certain that everyone is included in the digital economy. Thus, the theme for this year, Toward Digital Inclusion, recognizes each element of the equation -- the progress made and the progress yet to be made. Measuring the growth and use of the Internet is, like the Internet itself, a complex endeavor. This report reflects our attempt to capture three of the key benchmarks. Part I looks at Internet and computer access of households. We do this because the household is the traditional standard by which access is defined, in the United States and around the world. The examination of household access includes such factors as geography, income, race, and household type. In looking at the results and trying to determine the progress from year to year, it is important to understand that there is more than one way to interpret the results. When looking at computer and Internet access, it is clear that certain groups have far higher levels of Internet access and computer ownership. These groups have generally exhibited greater percentage point changes in their penetration rates from one survey to the next. On the other hand, they exhibit slower expansion rates from one survey to the next. At the same time, groups with lower penetration rates are exhibiting smaller percentage point changes but higher expansion rates because they are starting from a much lower base and have more opportunity for rapid and greater expansion. Part I also includes a new facet to the survey. For the first time, we survey household access to high- speed Internet services, primarily through cable TV and Digital Subscriber Line services. There are large differences in high-speed access based on income and other variables, and these initial data will enable us to track the increases and diffusion of high-speed access as broadband infrastructure is widely adopted. National Telecommunications and Information Administration Economics and Statistics Administration Page xiv FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Part II provides a different way of looking at the penetration of Internet access and computers. Instead of looking at households, this section of the report examines computer and online access by individuals. Many households, for example, include people who do not use the Internet, and the rate or degree at which this occurs differs among groups. By focusing on individuals, we are also able to capture important differences in Internet use based on people's age, gender, and labor force status. We can also look at how people use the Internet, for example, for e-mail or to look for a job, as well as where they use it, whether at home or at a library, for example. Part III, for the first time, examines the use of computers and the Internet among people with disabilities that adversely affect their ability to walk, to see, to hear, to use their hands and fingers, or to learn. In general, Internet access is half as common among people with disabilities as among other people, and computer access is even more skewed. To some degree this may reflect the fact that on average, disabled people are older and less likely to be employed, and also have lower incomes than people without disabilities. All of these variables are associated with lower computer and Internet use. By preparing and issuing this report, we hope to establish an objective baseline so the American people can understand the critical issue of access to the information technologies that are transforming the economy and our lives. In this way, this report can provide a basis for the continuing public debate about how best to ensure that every American can participate in the digital economy. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page xv EXECUTIVE SUMMARY The Internet is becoming an increasingly vital tool in our information society. More Americans are going online to conduct such day-to-day activities as education, business transactions, personal correspondence, research and information-gathering, and job searches. Each year, being digitally connected becomes ever more critical to economic and educational advancement and community participation. Now that a large number of Americans regularly use the Internet to conduct daily activities, people who lack access to these tools are at a growing disadvantage. Therefore, raising the level of digital inclusion by increasing the number of Americans using the technology tools of the digital age is a vitally important national goal. This report, Falling Through the Net: Toward Digital Inclusion, is the fourth in the Falling Through the Net series. In this report, we measure the extent of digital inclusion by looking at households and individuals that have a computer and an Internet connection. We measure the digital divide, as we have before, by looking at the differences in the shares of each group that is digitally connected. For the first time, we also provide data on high-speed access to the Internet, as well as access to the Internet and computers by people with disabilities. The data show that the overall level of U.S. digital inclusion is rapidly increasing: * The share of households with Internet access soared by 58%, rising from 26.2% in December 1998 to 41.5% in August 2000. * More than half of all households (51.0%) have computers, up from 42.1% in December 1998.  There were 116.5 million Americans online at some location in August 2000, 31.9 million more than there were only 20 months earlier.  The share of individuals using the Internet rose by a third, from 32.7% in December 1998 to 44.4% in August 2000. If growth continues at that rate, more than half of all Americans will be using the Internet by the middle of 2001. The rapid uptake of new technologies is occurring among most groups of Americans, regardless of income, education, race or ethnicity, location, age, or gender, suggesting that digital inclusion is a realizable goal. Groups that have traditionally been digital "have nots" are now making dramatic gains:  The gap between households in rural areas and households nationwide that access the Internet has narrowed from 4.0 percentage points in 1998 to 2.6 percentage points in 2000. Rural households moved closer to the nationwide Internet penetration rate of 41.5%. In rural areas this year, 38.9% of the households had Internet access, a 75% increase from 22.2% in December 1998. National Telecommunications and Information Administration Economics and Statistics Administration Page xvi FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION * Americans at every income level are connecting at far higher rates from their homes, particularly at the middle income levels. Internet access among households earning $35,000 to $49,000 rose from 29.0% in December 1998 to 46.1% in August 2000. Today, more than two-thirds of all households earning more than $50,000 have Internet connections (60.9% for households earning $50,000 to $74,999 and 77.7% for households earning above $75,000). * Access to the Internet is also expanding across every education level, particularly for those with some high school or college education. Households headed by someone with "some college experience" showed the greatest expansion in Internet penetration of all education levels, rising from 30.2% in December 1998 to 49.0% in August 2000. * Blacks and Hispanics still lag behind other groups but have shown impressive gains in Internet access. Black households are now more than twice as likely to have home access than they were 20 months ago, rising from 11.2% to 23.5%. Hispanic households have also experienced a tremendous growth rate during this period, rising from 12.6% to 23.6%. * The disparity in Internet usage between men and women has largely disappeared. In December 1998, 34.2% of men and 31.4% of women were using the Internet. By August 2000, 44.6% of men and 44.2% of women were Internet users. * Individuals 50 years of age and older -- while still less likely than younger Americans to use the Internet -- experienced the highest rates of growth in Internet usage of all age groups: 53% from December 1998 to August 2000, compared to a 35% growth rate for individual Internet usage nationwide. Nonetheless, a digital divide remains or has expanded slightly in some cases, even while Internet access and computer ownership are rising rapidly for almost all groups. For example, our most recent data show that divides still exist between those with different levels of income and education, different racial and ethnic groups, old and young, single and dual-parent families, and those with and without disabilities.  People with a disability are only half as likely to have access to the Internet as those without a disability: 21.6% compared to 42.1%. And while just under 25% of people without a disability have never used a personal computer, close to 60% of people with a disability fall into that category.  Among people with a disability, those who have impaired vision and problems with manual dexterity have even lower rates of Internet access and are less likely to use a computer regularly than people with hearing difficulties. This difference holds in the aggregate, as well as across age groups.  Large gaps also remain regarding Internet penetration rates among households of National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page xvii different races and ethnic origins. Asian Americans and Pacific Islanders have maintained the highest level of home Internet access at 56.8%. Blacks and Hispanics, at the other end of the spectrum, continue to experience the lowest household Internet penetration rates at 23.5% and 23.6%, respectively.  Large gaps for Blacks and Hispanics remain when measured against the national average Internet penetration rate. -- The divide between Internet access rates for Black households and the national average rate was 18 percentage points in August 2000 (a 23.5% penetration rate for Black households, compared to 41.5% for households nationally). That gap is 3 percentage points wider than the 15 percentage point gap that existed in December 1998. -- The Internet divide between Hispanic households and the national average rate was 18 percentage points in August 2000 (a 23.6% penetration rate for Hispanic households, compared to 41.5% for households nationally). That gap is 4 percentage points wider than the 14 percentage point gap that existed in December 1998. -- With respect to individuals, while about a third of the U.S. population uses the Internet at home, only 16.1% of Hispanics and 18.9% of Blacks use the Internet at home. -- Differences in income and education do not fully account for this facet of the digital divide. Estimates of what Internet access rates for Black and Hispanic households would have been if they had incomes and education levels as high as the nation as a whole show that these two factors account for about one-half of the differences.  With regard to computer ownership, the divide appears to have stabilized, although it remains large. -- The August 2000 divide between Black households and the national average rate with regard to computer ownership was 18 percentage points (a 32.6% penetration rate for Black households, compared to 51.0% for households nationally). That gap is statistically no different from the gap that existed in December 1998. -- Similarly, the 17 percentage point difference between the share of Hispanic households with a computer (33.7%) and the national average (51.%) did not register a statistically significant change from the December 1998 computer divide.  Individuals 50 years of age and older are among the least likely to be Internet users. The Internet use rate for this group was only 29.6% in 2000. However, individuals in this age group were almost three times as likely to be Internet users if they were in the labor force than if they were not. National Telecommunications and Information Administration Economics and Statistics Administration Page xviii FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION  Two-parent households are nearly twice as likely to have Internet access as single-parent households (60.6% for dual-parent, compared to 35.7% for male-headed households and 30.0% for female-headed households). In central cities, only 22.8% of female-headed households have Internet access.  Even with broadband services, a relatively new technology used by only 10.7% of online households, there are disparities. Rural areas, for example, are now lagging behind central cities and urban areas in broadband penetration at 7.3%, compared to 12.2% and 11.8%, respectively. Americans are using the Internet in the following ways:  E-mail remains the Internet's most widely used application ­79.9% of Internet users reported using e-mail.  Online shopping and bill paying are seeing the fastest growth.  Low income users were the most likely to report using the Internet to look for jobs.  The August 2000 data show that schools, libraries, and other public access points continue to serve those groups that do not have access at home. For example, certain groups are far more likely to use public libraries to access the Internet, such as the unemployed, Blacks, and Asian Americans and Pacific Islanders. Internet access is no longer a luxury item, but a resource used by many. Overall, the findings in this report show that there has been tremendous progress in just 20 months, but much work remains to be done. Computer ownership and Internet access rates are rapidly rising nationwide and for almost all groups. Nonetheless, there are still sectors of Americans that are not digitally connected. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 1 PART I HOUSEHOLD ACCESS TO COMPUTERS AND THE INTERNET Americans bought home computers and hooked them up to the Internet at a remarkable rate between December 1998 and August 2000. In just 20 months, the share of households with Internet access soared by 58%, from 26.2% to 41.5%, while the share of households with computers rose from 42.1% to 51.0%.1 More than 80% of households with computers also have Internet access today, up from little more than 60% in 1998. Figure I-1 Percent of U.S. Households with a Computer and Internet Access, Selected Years 60 51.0 50 42.1 41.5 40 36.6 Computer 30 26.2 24.1 22.8 20 Percent of U.S. Households 18.6 15.0 Internet 10 8.2 0 1984 1988 1992 1996 2000 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. Virtually every group has participated in the sharp upward trend of Americans connecting their homes to the Internet. Large gains occurred at every income category, at all education levels, among all racial groups, in both rural and urban America, and in every family type. As documented since 1997, certain groups are much further ahead than others in establishing Internet connections from home. This year, however, we found that households in the middle income and education ranges are gaining ground in connecting to the Internet at a rate as fast or faster than those at the top ranges. 1 The share of homes with computer and Internet access represents a widely used gauge of electronic connectivity for a country's population. The three previous reports in the Falling Through the Net series beginning in 1995 have focused on this metric, as have reports done in Australia, Canada, Denmark, Finland, France, Germany, Italy, Japan, Norway, Sweden, and the United Kingdom. This measure is used because, in some cases, data on a household basis are the only data available. As more demographic data on people's access become available, as those covered in the second part of this report, other metrics can be expected to become more common. National Telecommunications and Information Administration Economics and Statistics Administration Page 2 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION The rapid growth in computer and Internet use among those in the middle income and education ranges and among relatively disadvantaged populations suggests that, in some cases, the digital divide has begun to narrow or will do so soon, and that we are entering a period of fuller digital inclusion. In general, groups with very low adoption levels in 1998 experienced some of the highest expansion or growth rates over the last two years, even though they may not have experienced a high percentage-point change.2 (See Tables I-1 and I-2 on pages 30 and 31.) This section of the report examines the prevalence of households with home computers and Internet access by various demographic and geographic breakdowns, and also discusses reasons why some households with computers chose not to go online. We also look at the penetration of higher speed Internet access. Although still modest -- 11% of Internet users and 4% of all households -- these broadband connectivity rates establish a benchmark for future comparisons. OVERALL HOUSEHOLD FINDINGS: THE NATION MOVES TOWARD DIGITAL INCLUSION Between December 1998 and August 2000, U.S. households' access to computers and the Internet grew dramatically. According to the latest survey, 43.6 million households (or 41.5% of all households) had Internet access.3 The percentage of homes with household Internet access registered an impressive 58% gain from the 26.2% penetration rate in December 1998. Computer ownership has also continued to soar. In August 2000 53.7 million households had computers. The percentage of homes with computers rose by 21%, from 42.1% to 51.0%, from December 1998 to August 2000. Taking a slightly longer view, since 1997, computer penetration has risen by almost 40%, while Internet access has soared by 123%. The rapid uptake of the Internet is perhaps best revealed by examining the growing percentage of households with computers or other devices that connect to the Internet. In 1997, just over half of all households with computers had Internet access. By 2000, that figure had surged to four out of five households. DIGITAL INCLUSION PROCEEDS UNEVENLY The tremendous growth in household computer and Internet use has occurred across all demographic groups, including income and education levels, races, locations, and household types. Nevertheless, some Americans are still connecting at far lower rates than others, creating a digital divide (i.e., a difference in rates of access to computers and the Internet) among different demographic groups. 2 Gauging the progress of a given group relative to others with respect to computer and Internet access can be accomplished in several ways. In this report, we have made use of two indicia: percentage-point change and percentage change (expansion rate). 3 As of August 2000, there were an estimated 105 million households in the United States. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 3 Certain groups (such as Whites, Asian Americans and Pacific Islanders, and those with higher income and education levels) have higher than average levels of computer ownership and Internet access. These groups have generally exhibited greater percentage point changes (that is, the change in penetration rate from one survey to the next). On the other hand, they exhibit slower expansion or growth rates (i.e., growth in the percentage rate). At the same time, groups with lower penetration rates (such as Blacks, Hispanics, and those with lower income and education levels) are exhibiting smaller percentage point changes but higher expansion rates because they are starting from a much lower base and have more opportunity for rapid, and greater, expansion. For example, a group that had a penetration rate of 10% in December 1998 and 20% in August 2000 would exhibit a 100% expansion rate but only a 10 percentage point change. A case in point centers on households with both high income and high education levels. These households made substantial percentage point gains in Internet access over 20 months. They had already achieved relatively high levels of penetration by December 1998. Their expansion rates since that date, however, have been matched or surpassed by those with mid-range incomes and levels of education. The pattern exhibited thus far by household access to both computers and the Internet accords with the "S-curve" pattern typically observed in the adoption of new technologies. Historically, when a new technology is first introduced, the number of users expands rapidly but from a low base. Over time, as a group reaches the middle range of the S-curve, the growth rate tends to slow while the point change continues to increase. Once the penetration nears its saturation point (at the higher end of the S-curve), both the percentage point change and the expansion rate begin to decrease. Figure I-2 An Illustrative S Curve 100 90 80 70 60 50 Percent 40 30 20 10 0 1 Time The adoption rates along these curves depend on a number of factors, including the awareness of the new technology, the affordability of that technology, adaptations to the technology to widen its potential market, and the attraction for people to use the technology as its usage becomes National Telecommunications and Information Administration Economics and Statistics Administration Page 4 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION widespread. The purchase of computers for the home has been spurred not only by falling prices and more user-friendly software, but also by public policy decisions not to regulate or otherwise impede the rapid expansion of the Internet. For Internet access itself, the continuation of public policies to promote competition (that lowers prices and improves quality) and to make new technologies more accessible will substantially influence the uptake rates of the current groups of information "have- nots," and will help move these groups to greater digital inclusion. Below we examine variations in household Internet and computer access, looking at differences in geography, income, race/ethnicity, education, and household type. GEOGRAPHY One of the most dramatic shifts that has occurred since December 1998 has been the increase in Internet access by rural households. Rural areas narrowed the divide when compared to the national average. In contrast, central cities had significant increases in access, but fell behind other parts of the country in terms of the gains in access. Urban areas, even though they include central cities, continue to have a greater percentage of households with Internet penetration than rural areas.4 Data relating to Internet access by geography can be found in the Appendix, Figures A8-A10, A12-A14. Figure I-3 Percent of U.S. Households with Internet Access By U.S., Rural, Urban and Central Cities, 1998 and 2000 50 1998 2000 45 41.5 42.3 38.9 40 37.7 35 30 27.5 26.2 24.5 25 22.2 20 Percent of U.S. Households 15 10 5 0 U.S. Urban Central City Rural Source: NTIA and ESA, U .S. Departm ent of Com m erce, using August 2000 U .S. Bureau of the Census Current Population Survey. 4 The "urban" category includes those areas classified as being urbanized (having a population density of at least 1,000 persons per square mile and a total population of at least 50,000) as well as cities, villages, boroughs (except in Alaska and New York), towns (except in the six New England states, New York, and Wisconsin), and other designated census areas having 2,500 or more persons. A "central city" is the largest city within a "metropolitan" area, as defined by the Census Bureau. Additional cities within the metropolitan area can also be classified as central cities if they meet certain employment, population, and employment/residence ratio requirements. All areas not classified by the Census Bureau as urban are defined as rural and generally include places of less than 2,500 persons. About 1/4 of all households were in rural areas in August 2000. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 5 Rural Households Narrow the Gap Rural households, which historically trailed those in central cities and urban areas, are showing significant gains in Internet access. The gap between households in rural areas and households nationwide that access the Internet has recently narrowed. There was a 4.0 percentage point difference in 1998, narrowing to a 2.6 point difference in 2000. In rural areas this year, 38.9% of households had Internet access, an increase of 75% from 1998's access rate of 22.2%. In October 1997, just 14.8% of rural households had online access. Rural Black households, which have historically had the lowest rates of Internet access, made significant gains. In December 1998, 7.1% of those households had Internet access. By 2000, the figure jumped to 19.9%. The growth in rural Internet household access has come at all income levels, with the lowest levels showing some of the highest growth rates. As a result, the Internet access rates for rural households now approximate those of households across the country. Figure I-4 Percent of Rural Households with Internet Access By Income ($000s), 1998 and 2000 90 1998 2000 80 76.6 70 59.5 60 53.7 50 41.8 38.7 40 31.5 Percent of U.S. Households 30 26.4 20.3 20 15.4 11.3 9.3 10 4.6 0 Under 15 15-24.999 25-34.999 35-49.999 50-74.999 75+ Source: NTIA and ESA, U.S. Department of Comm erce, using U.S. Bureau of the Census Current Population Survey supplem ents. In the lowest income category, households with income below $15,000, Internet access for rural households rose from 4.6% to 11.3%. At most of the other income levels, rural households now come close to the nationwide figures, having doubled their access rates through the middle income levels. Growth rates have been slower at the highest income levels, but the access rates are only slightly below the national average. Slower Growth in Central Cities In contrast to the strong growth in rural areas, households in central cities have experienced much lower rates of increase for their Internet penetration. In August 2000, 37.7% of central city National Telecommunications and Information Administration Economics and Statistics Administration Page 6 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION households had Internet access, contrasted with the national figure of 41.5%­a gap of 3.8 percentage points. In December 1998, central city households had a 24.5% access rate, 1.7 percentage points lower than the national rate. In terms of the national figures, the gap appears to be growing, rather than narrowing, and central cities have slipped below the rural areas in terms of household access. Although households in central cities experienced double-digit growth in household Internet access, their access rate was below that of the national average. The increase for central city households from December 1998 to August 2000 was 13.2 percentage points (an expansion of 54%). This compares to an increase over the 14 months between the 1997 and 1998 surveys of 7.2 points (a growth rate of 42%). Every income category for central city households showed double-digit percentage growth between 1998 and 2000. At the lowest income level, below $15,000, household Internet access nearly doubled, from 7.7% in 1998 to 13.5% in 2000 (an increase of 75%). Black households in central cities registered a 20.1% access rate, about double the 1998 rate of 10.2%, but slightly below the national average for Blacks of 23.5%. The Hispanic households in central cities had a 21.5% access rate, a little more than double the 1998 figure of 10.2%, but slightly below the national average for Hispanic households of 23.6%.5 White central city households had a 47.1% Internet access rate, up from 32.3% in December 1998. Urban Areas Continue Above-Average Internet Access Urban areas continue to have the highest household Internet penetration rates. The rate of growth in household Internet access in urban areas between 1998-2000 was about the same as it was for central cities, about 57%. However, the level of Internet access in urban areas started from a high level, and continues to exceed the national average. In urban areas, 42.3% of households had Internet access, contrasted with 41.5% of households nationally in 2000. Urban households have seen a steady increase over the last three years. In 1997, the Internet penetration rate for urban households was 19.9%. It grew to 27.5% in 1998. The lowest income levels saw a 72% increase between 1998 and 2000, which translated to a 5.5 percentage point increase to the current level of 13.2% access for households with incomes under $15,000. The $75,000+ category had a household access rate of 78.0%, the highest single category rate for the geographic regional breakdown. Each racial and ethnic group had higher household Internet penetration rates in urban areas than in rural areas. Urban Black households registered a 24.0% access rate, up from 11.7% in December 1998, and contrasted with the rural figure of 19.9% for Black households. Hispanic households had 5 In surveys underlying this report, persons of Hispanic origin were determined through self-identification by place of origin or descent. Persons of Hispanic origin are those who indicated that their origin was Mexican-American, Chicano, Mexican, Puerto Rican, Cuban, Central or South American, or other Hispanic. People of Hispanic ethnicity can be of any race. In the tabulations throughout this analysis, people of Hispanic origin are grouped as Hispanic and excluded from the race categories. Throughout this report, "Whites" should be read as "Whites, non-Hispanic" and "Blacks" should be read as "Blacks, non-Hispanic." National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 7 a 23.9% rate, up from 12.9% in December 1998, and above the 19.9% rural rate for Hispanic households. The White household rate in urban areas was 48.3%, up from 32.4% in December 1998, and above the national average of 46.1%. Snapshot from Geographical Regions The West continues to be the most on-line region of the country, with household Internet access of 46.6%, followed by the Northeast (43.0%), Midwest (40.9%), and South (37.9%). Rural areas in the Northeast registered the highest access rate (49.9%), followed by urban areas in the West (47.2%). Northeast central city regions had the lowest household access rate (33.1%), followed by rural regions in the South (33.8%). Computer Ownership by Geography Nationally, just over half (51%) of households own computers, up from 42.1% in December 1998. Urban areas had the highest rate of ownership (51.5%), increasing 8.6 points in the last 20 months. Rural areas, tracking the growth in Internet access, increased 9.7 percentage points, to reach a household ownership level of 49.6%. Central cities had a 46.3% ownership rate, up 7.8 points since December 1998. All data relating to computer ownership by geography can be found in the Appendix, Figures A2-A4, A6-A7. Figure I-5 Percent of U.S. Households with a Computer By U.S., Rural, Urban, and Central City Areas, 1994, 1997, 1998, 2000 60 1994 1997 51.0 51.5 1998 49.6 50 2000 46.3 42.1 42.9 39.9 40 38.5 36.6 37.2 34.9 32.8 30 24.1 24.8 22.1 22.0 Percent of U.S. Households 20 10 0 U.S. Rural Urban Central City Source: NTIA and ESA, U.S. Department of Comm erce, using U.S. Bureau of the Census Current Population Survey supplem ents. Households in all regions at all income levels also showed improvement in computer ownership. In both central cities and in urban areas, 20% of households with less than $15,000 in income now own computers, contrasted with 17% of rural households in the same income bracket. Nationally, 19.2% of households with less than $15,000 owned a computer in August 2000, up from 14.5% in December 1998. National Telecommunications and Information Administration Economics and Statistics Administration Page 8 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION INCOME Although computers and Internet access are coming down in price, they are still sufficiently expensive that household income remains an important factor in home Internet access. Nevertheless, households across all income levels and throughout the country have made significant gains in Internet access since December 1998. Some of the biggest gains have come at every income level in rural areas. In addition, gains have been made at all income levels by different racial and ethnic groups. Data relating to Internet access by income can be found in the Appendix, Figures A9 and A11. Internet Penetration Rises Across Income Levels Household Internet access continues to correlate closely with income. Across the United States, however, households in the lower income bands registered increases in Internet access much faster than the national 58% gain. Households with less than $15,000 in income had a 12.7% Internet penetration rate, 79% higher than in December 1998.6 Between 1997 and 1998, the income band improved 82%, from 3.9% penetration to 7.1%. At the $15,000-$24,999 income levels, 21.3% of households had Internet access. The rate of increase between 1998 and 2000 was 93%, as the penetration rate increased steadily from 8.1% in 1997, to 11.0% in 1998, to 21.3% in 2000. In August 2000, the penetration rate for households with incomes between $25,000 and $34,999 stood at 34.0%, an increase of 78% over the 19.1% penetration rate in 1998. Figure I-6 Percent of U.S. Households with Internet Access By Income ($000s), 1998 and 2000 90 1998 2000 80 77.7 70 60.9 60.3 60 50 46.2 43.9 40 34.0 29.5 Percent of U.S. Households 30 21.3 19.1 20 12.7 11.0 10 7.1 0 Under 15 15-24.999 25-34.999 35-49.999 50-74.999 75+ Source: NTIA and ESA, U .S. Departm ent of Com m erce, using U .S. Bureau of the Census C urrent Population Survey supplem ents. All three income ranges beyond $35,000 had the same 17 point gain from 1998 to 2000. Households with income between $35,000 and $49,999 achieved a 46.1% Internet penetration rate in 2000, up 6 Although the Census Bureau collected data on household income in $5,000 increments up to $35,000, this report depicts changes in wider income bands. Since the latest ceiling for poverty income is $13,300 for a family of three and $17,000 for a family of four, it seemed appropriate to set the first breakpoint at $15,000. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 9 from 29.0% in 1998. Households with incomes between $50,000 and $74,999 went from 43.9% to 60.9%, while those at $75,000 and above climbed from 60.3% to 77.7%. With the same point gain but starting from much lower initial levels, the $35,000-$49,999 and the $50,000-$74,999 income groups had larger expansion rates than the highest income group. Geographic Areas Show Different Rates of Increase Different areas of the country showed different rates of growth in household Internet penetration at incomes below $75,000. At the highest income level ($75,000 and higher) household penetration was relatively equal in all geographic areas at 77%. For households earning less than $15,000 annually, rural households had the lowest penetration rate at 11.3%. However, that rate is more than double what it was for the same group of households in 1998 (at 4.5%). In other locations, however, the household penetration rate for the lowest income group is higher, even if the rate of growth is lower. In urban areas, for example, 13.2% of lowest- income households had Internet access, an increase of 5.5 percentage points (72% higher than 1998 levels). Central city households with incomes below $15,000 achieved a 13.5% penetration rate in 2000, a 75% increase from 1998. Rural areas at all income levels showed the highest percentage increases in penetration rates. In addition to the 146.5% for the lowest income group, households with incomes between $15,000 and $24,999 achieved increases of almost 120%. Increases in Internet access across all income levels in other areas were lower, but all showed improvement. In urban areas, for example, Internet access among households with incomes between $15,000 and $24,999 grew 87% in 2000 over their 1998 access rates. Central city households, however, had lower increases than rural areas. The household income brackets with the highest percentage increases were the group with less than $15,000 income, which achieved a 75% increase, to a 13.5% penetration level, and the group between $15,000 and $24,999, which had a 61% increase, achieving a 20.7% access level for 2000. Low-Income Households Show Computer Ownership Gains Almost one-fifth (19.2%) of households in the lowest income bracket (under $15,000 per year) now own computers, an increase of 4.7 percentage points from the 14.5% figure in December 1998. Overall, households at the lowest income levels increased their ownership of computers by approximately one-third in August 2000 over the December 1998 levels. National Telecommunications and Information Administration Economics and Statistics Administration Page 10 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure I-7 Percent of U.S. Households with a Computer By Income ($000s), 1998 and 2000 100 1998 2000 90 86.3 79.9 80 73.2 70 66.3 58.6 60 50.2 50 44.6 40 35.8 Percent of U.S. Households 30.1 30 23.7 19.2 20 14.5 10 0 Under 15 15-24.999 25-34.999 35-49.999 50-74.999 75+ Source: NTIA and ESA, U .S. Departm ent of Com m erce, using U .S. Bureau of the Census C urrent Population Survey supplem ents. At other income levels, 30.1% of households in the $15,000-$24,999 bracket had computers in 2000, a 27% increase over 1998. The next fastest growing income bracket for computer penetration was $25,000-$34,999. In that group, 44.6% of households owned a computer, an increase of 25% from the 35.8% penetration rate in 1998. In August 2000, 17.0% of rural households at the lowest income level owned a computer, contrasted with 19.9% of households with less than $15,000 income in urban areas and in central cities. At income levels of more than $75,000, 86.3% of households had a computer, up from 79.9% in 1998. The ownership rate in central cities (83.7%) trailed the national average at that income. For all three income categories above $35,000, rural households were as likely as their urban peers to have a computer at home. Data relating to computer ownership by income can be found in the Appendix, Figures A3 and A5. EDUCATION Home computer and Internet access rates vary by the education level of the reference person or householder (a person residing in the housing unit who owns it or is responsible for its rent). Better educated adults are more likely to use and become familiar with computers and the Internet at work or through their school experiences. In December 1998, 53.0% of households headed by a person with education beyond college had Internet access. That surpassed the access rate for households headed by a person with a bachelor's degree (46.8%), those with some college experience (30.2%), those with some college experience (16.3%), and those with less than a high school diploma (5.0%). National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 11 Figure I-8 Percent of U.S. Households with Internet Access By Education of Householder, 1998 and 2000 80 1998 2000 69.9 70 64.0 60 s 53.0 49.0 50 46.8 40 29.9 30.2 30 Percent of U.S. Household 20 16.3 11.7 10 5.0 0 Less than high school High school Some college Bachelor's degree Post graduate Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. The same patterns existed in August 2000, although rates have soared for all educational levels in the last 20 months. Of households headed by someone with post-college education, 69.9% had Internet access. That compares to households headed by someone with a college degree alone (64.0%), those with some college experience (49.0%), those educated beyond high school but no college degree (29.9%), and those with less than a high school degree (11.7%). The 1998-2000 expansion rates were highest for those at lower levels of education. For example, Internet access expanded by 135% for those with less than a high school education, by 62% for those with some college, and by 32% for those with post college education. The median level of education among adult family heads is some college. This group had a larger point gain over the last 20 months 19 points than households in the two higher education categories with 17 point gains each. Data relating to Internet access and computer ownership by education level can be found in the Appendix, Figures A6 and A12. The interplay between education and income levels is worth examining more closely. Although both of these factors correlated with Internet access, as we have seen, they are also linked to each other. In terms of home Internet access rates, the ratio of the highest group to the lowest is more than five to one for both the income and education categories in Table I-2. Since the two are so correlated, we have examined whether just one factor is dominant and the other represents a misleading correlation, or whether both are independently associated with Internet access. Figure I-9 presents some evidence that both income and education are independently associated with Internet access. Although the average Internet access rate for incomes of $75,000 and greater is 77.7%, it ranges from 82% for those with a college degree or more down to 51% for those with less than a high school education. Likewise, households with incomes between $15,000 and $34,999 had an average access rate of 28%, ranging from 46% for college or more down to 11% for less than high school. The same wide disparities occur within education categories. For example, among households in which the householder had some schooling beyond high school but not a college National Telecommunications and Information Administration Economics and Statistics Administration Page 12 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION degree, home Internet access reached 76% in the over $75,000 income group but only 26% in the under $15,000 income group. Among households with incomes below $15,000 and less than a high school education, only 4% had Internet access at home. Figure I-9 Percent of U.S. Households with Home Internet Access By Income and Education, 2000 90 80 70 60 50 40 30 Percent of U.S. Households 20 College degree or more 10 Som e college 0 High school $75,000+ Less than high school $35,000- 74,999 $15,000- 34,999 Under $15,000 Source: NTIA and ESA, U.S. Department of Com m erce, using U.S. Bureau of the Census Current Population Survey supplements. Once again, groups with higher initial penetration rates generally had large point gains but lower than average expansion rates, as shown in Table I-2. Those with the lowest incomes and education had much lower initial home Internet rates in 1998; however, they had the largest expansion rates. Although the expansion rate for the country was 58%, no group with post high school education and incomes above $35,000 had expansion rates that large. Among those with at least a college degree, only those with the lowest household incomes had expansion rates above the national average. The largest point gains (between 20 to 22 points) were registered by those with incomes above $75,000 and less than a college degree and those with $35,000 to $74,999 in income and some college education. Indeed, households with incomes more than $75,000 and at least a college degree have reached the flattening stage of the "S-Curve." Their 16.3 point gain leaves that group so close that they would hit 100% in less than two years if they continued at the recent pace. RACE AND ETHNICITY Between December 1998 and August 2000, there has also been a surge in uptake of Internet and computer access among households of different ethnic and racial origins. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 13 Figure I-10 Percent of U.S. Households with Internet Access By Race/Hispanic Origin, 1998 and 2000 60 56.8 1998 2000 50 46.1 40 36.0 29.8 30 23.5 23.6 Percent of U.S. Households 20 12.6 11.2 10 0 W hite Black Asian Am er. & Pac. Isl. Hispanic Source: NTIA and ESA, U .S. Departm ent of Com m erce, using U .S. Bureau of the Census C urrent Population Survey supplem ents. Households of Asian Americans and Pacific Islanders have maintained the greatest Internet penetration at 56.8% in 2000. This group has also experienced the most dramatic growth in home Internet access in the last two years: an increase of 20.8 percentage points (from 36.0% in 1998). White households continued to have the second highest rate of access at 46.1% and experienced a growth of 16.3 percentage points (from 29.8% in 1998). At the other end of the spectrum, Black and Hispanic households continue to experience the lowest Internet penetration rates (at 23.5% and 23.6%, respectively). Internet uptake by Black and Hispanic households has been strong in the last two years, however, as shown in Figure I-11. Between December 1998 and August 2000, access among Black households doubled from 11.2% in 1998 to 23.5% in 2000, a gain of 12.3 percentage points. Hispanic households' access increased 11 percentage points (from 12.6% in 1998 to 23.6% in 2000). There is significant variation in Internet access and computer ownership within subgroups of these broad categories. For example, although Asian Americans and Pacific Islanders have high rates of connectivity as a group, there are subgroups that have lower rates of access due to lower income levels, educational attainment, or other reasons. By the same token, Blacks and Hispanics have high levels of connectivity despite lower rates overall. This report does not include separate data on American Indians, Aleuts, and Eskimos (AIAE) because the sampled population from that group is too small for credible results.7 7 Last month, for the first time in its long-running reports on poverty and income, the Census Bureau did include results for AIAE, but only by pooling the last three years of data collected. We do not have three years of data collected on a comparable basis to produce separate numbers for AIAE. Data for AIAE households can be found, however, in the public use file which can be found at www.ntia.doc.gov, www.esa.doc.gov, and at www.bls.census.gov/cps/ cpsmain.htm. National Telecommunications and Information Administration Economics and Statistics Administration Page 14 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure I-11 Rate of Growth of Internet Penetration By Race/ Hispanic Origin, 1998 to 2000 120 110 100 87 80 58 60 55 40 20 0 W hite Black Asian Am er. & Pac. Isl. Hispanic Source: NTIA and ESA , U .S. D epartm ent of C om m erce, using U .S. B ureau of the C ensus C urrent P opulation S urvey supplem ents. Although the percentage point change for Blacks and Hispanics was not as high as that for Asian Americans and Pacific Islanders or Whites, their rates of growth between 1998 and 2000 were striking. Internet access among Black households more than doubled (a 110% increase) between 1998 and 2000, while Hispanic households' access grew 87% in the same period. This compares to a growth rate of 55% for White households and 58% for Asian American and Pacific Islanders households. Internet access among racial and ethnic groups continues to differ by geography and income level. With regard to geography, almost all groups have a slightly higher Internet penetration rate in urban areas (48.3% for Whites, 24.0% for Blacks, and 23.9% for Hispanics). Groups in rural areas, on the other hand, have experienced significantly lower penetration rates (40.9% for Whites, and 19.9% for Blacks and Hispanics). The survey's sample of rural Asian Americans and Pacific Islanders is too small for valid comparisons with their urban counterparts. Income also affects whether households of different ethnic and racial backgrounds have Internet access. Households earning above $75,000 are highly likely to have Internet access (78.6% for Whites, 70.9% for Blacks, 63.7% for Hispanics, and 81.6% for Asian Americans and Pacific Islanders). The rates of connectivity decline significantly as income declines, although less so for Asian Americans and Pacific Islanders households. While Hispanics and Blacks are particularly unlikely to have Internet access at incomes below $15,000 (5.2% and 6.4%, respectively), 33.2% of Asian Americans and Pacific Islanders households in that lowest income bracket have Internet access. Because income and education are so highly correlated with whether households have Internet access, the question arises as to whether those factors might fully explain the observed gaps National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 15 between the national average and the rates for Blacks and Hispanics. Those two groups as a whole have lower incomes and lower education levels than the national average. Differences in overall income and educational levels of Blacks and Hispanics do not fully account, however, for their lower levels of home Internet access. After adjusting for the effects of lower average income and educational attainment with shift-share analysis,8 we observe that: (1) roughly half of the gap remains; (2) both groups made roughly the same gains over the last 20 months as the national average; and (3) both groups, on this adjusted basis for August 2000, had substantially surpassed the national average for December 1998. Figure I-12 depicts the results of this shift-share analysis. In August 2000, both Blacks and Hispanics had home Internet access 18 points below the national average. The effects of having levels of income and education lower than the national average, however, accounted for 8 percentage points of the gap for Blacks and for 11 percentage points of the gap for Hispanics. Figure I-12 Income and Education Differences Account for Half of the Gap between Blacks and Hispanics and the National Average Blacks '98 11.2 6.3 Hispanics '98 12.6 7.8 Nation '98 26.2 0 Blacks '00 23.5 8.1 Hispanics '00 23.6 11.1 Nation '00 41.5 0 0 5 10 15 20 25 30 35 40 45 Actual Rate Adjmt for Inc & Educ Source: NTIA and ESA, U .S. Departm ent of Com m erce, using U .S. Bureau of the Census C urrent Population Survey supplem ents. Over the 20 months from December 1998 to August 2000, the share of homes online rose by 12 points for Blacks, by 11 points for Hispanics and by 15 points for the country as a whole. However, on an income- and education-adjusted basis, Blacks and Hispanics each rose by 14 points, which is essentially equivalent to the national gain. The 32% penetration rates for Blacks and the 35% for Hispanics on an adjusted basis for August 2000, while far short of the national average of 42%, were both well above the national rate of 26% in December 1998. Data relating to Internet access among households of different races and ethnic origins can be found in the Appendix, Figures A10-A11. 8 In this shift-share analysis, we used the actual Internet access rates for each of the possible combinations of income and education levels provided in the Census data for Blacks and Hispanics separately. We then calculated what the Internet access rate among Blacks and Hispanics would have been if the share of Blacks and Hispanics in each of the income- education combinations had been the same as the national average. National Telecommunications and Information Administration Economics and Statistics Administration Page 16 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION The Internet Divide Continues Substantial disparities have continued to widen, both when comparing Blacks and Hispanics against the national average and when comparing them against Whites. The divide between the Black household Internet access rates and the national average rate increased 3.0 percentage points, from 15.0 percentage points in December 1998 to 18.0 percentage points in August 2000. The divide between Hispanic households and the national average rate increased 4.3 percentage points, from 13.6 percentage points in December 1998 to 17.9 percentage points in August 2000. A similar widening occurred between racial groups. Between October 1997 and December 1998, the gap between White and Black households grew 5.1 percentage points, from a 13.5 percentage point difference in 1997 to a 18.6 percentage point difference in 1998. In the 20- month period between December 1998 and August 2000, the divide between White and Black households increased 4 percentage points, resulting in a percentage point difference of 22.6 points between White and Black households. The gap between White and Hispanic households grew 4.7 percentage points between 1997 and 1998, and then continued to widen even further (by 5.3 percentage points) between 1998 and 2000. Between Asian Americans and Pacific Islanders and Whites, the gap grew from 6.2 percentage points in 1998 to 10.7 percentage points in 2000. No 1997 data are available for Asian Americans and Pacific Islanders. While this measure of the Internet divide continued to widen, the high rates of expansion for Blacks and Hispanics suggest that, in time, this widening will subside. If computer ownership provides any pattern, we may soon see some stabilization and perhaps even narrowing of the Internet divide. Figure I-13 Percent of U.S. Households with a Computer By Race/Hispanic Origin, 1998 and 2000 70 65.6 1998 2000 60 55.7 55.0 50 46.6 40 32.6 33.7 30 25.5 23.2 Percent of U.S. Households 20 10 0 W hite Black Asian Am er. & Pac. Isl. Hispanic Source: NTIA and ESA, U .S. Departm ent of Com m erce, using U .S. Bureau of the Census C urrent Population Survey supplem ents. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 17 The Computer Divide Has Stabilized Households of different ethnic and racial backgrounds also had disparate rates of ownership of computers. As with Internet access, households of Asian Americans and Pacific Islanders continue to exhibit the highest penetration rates (65.6%), followed by White households (55.7%), Hispanics (33.7%), and Blacks (32.6%). All ethnic groups experienced comparable increases in computer penetration since 1998: ownership in 2000 was 10.6 percentage points higher for Asian Americans and Pacific Islanders, 9.4 percentage points higher for Blacks, 9.1 points higher for Whites, and 8.2 points higher for Hispanics. As with Internet access, computer ownership is strongly influenced by income. Households earning more than $75,000 are consistently likely to own computers: 87.0% for White households, 86.9% for those of Asian Americans and Pacific Islanders, 83.4% for Blacks, and 76.1% for Hispanics. The computer divide becomes more pronounced at lower income levels, although less so for households of Asian Americans and Pacific Islanders. At incomes less than $15,000, Black households and Hispanic households are particularly unlikely to have computers (11.5% and 12.5%), compared to White households (22.8%) and Asian American and Pacific Islander households (39.4%). Geography also plays a role in a household's likelihood of owning a computer. In general, those in rural areas are less likely to own computers (51.8% for Whites, 28.8% for Hispanics, and 27.5% for Blacks), while households in urban areas exceed the national average (57.3% for Whites, 34.2% for Hispanics, and 33.3% for Blacks). Perhaps most significantly, the data show that digital divide regarding computer penetration has stabilized. Large gaps remain between the share of Black and Hispanic households with a computer and the national average, but the gaps did not widen from 1998 to 2000. The divide between the percent of Black households with a computer and the national average rate declined 0.5 percentage points, from 18.9 percentage points in December 1998 to 18.4 percentage points in August 2000. The divide between the percent of Hispanic households with a computer and the national average rate increased 0.7 percentage points, from 16.6 percentage points in December 1998 to 17.3 percentage points in August 2000. Because computer penetration for White, Black, and Hispanic households increased by comparable amounts, the gaps in computer penetration when comparing these groups of households have also stabilized. The gaps widened from 1994 to 1998, but did not widen further from 1998 to 2000. Data relating to computer ownership among households by race and ethnic origin can be found in the Appendix, Figures A4-A5. HOUSEHOLD TYPE The makeup of a household ­such as the presence or absence of children, and whether there are one or two parents­ is also associated with that household's likelihood of having computer and particularly Internet access. Even here, however, single-parent households have made great strides since December 1998, and are catching up to dual-parent households at higher income levels. Data National Telecommunications and Information Administration Economics and Statistics Administration Page 18 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION relating to Internet access and computer ownership by household type can be found in the Appendix, Figures A7 and A13. Internet Access is Highest for Households with Two Parents, Although Single Parent Households are Making Gains Households with two parents and children have much higher rates of Internet access than other family types. As in 1998, married couples with children under 18 are far more likely to have Internet access (60.6%) than married couples without children (43.2%). This high connectivity rate for couples with children holds true regardless of whether they live in urban areas (61.5%), rural areas (58.3%), or central cities (55.1%). Those in "non-family households" (single or unmarried people), on the other hand, are the least likely to have Internet access (at 28.1%). Of all household types, non-family households in rural areas are the least likely to have Internet access (20.2%). Figure I-14 Percent of U.S. Households with a Computer By Family Type, 1998 and 2000 70 1998 2000 60.6 60 50 43.2 39.3 40 35.7 30.0 30 27.2 28.1 Percent of U.S. Households 19.5 20 17.5 15.0 10 0 Married couple w/ Male household w/ Female household Family households Non-family child <18 child <18 w/ child <18 w/o child <18 households Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. Having one or two parents is also related to whether a family has Internet access. Two-parent households are nearly twice as likely to have Internet access as single-parent households (60.6% for dual-parent, versus 35.7% for male-headed households with children less than 18 years of age, and 30.0% for female-headed households with children less than 18 years of age). Female-headed households in central cities are particularly unlikely to have Internet access (22.8%), as are male- headed households in rural areas (30.3%). The differences among household types are most distinct at the middle income levels. At incomes below $15,000, on the other hand, the disparities diminish somewhat: 19.7% for dual-parent households; 14.5% for male-headed households; 12.6% for female-headed households; 13.5% for family households without children; and 11.4% for non-family households. Similarly, the gap narrows at incomes above $75,000: 84.4% for dual-parent households; 69.4% for male-headed National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 19 households; 67.9% for female-headed households; 74.5% for family households without children; and 68.4% for non-family households. While single parents trail significantly behind two-parent households in Internet access, they have shown the most change since 1998. Connectivity among female-headed households doubled between 1998 and 2000 (from 15.0% to 30.0%). Connectivity among male-headed households also grew substantially (by 83%) from 19.5% in 1998 to 35.7% in 2000. In time then, the gap between single and dual-parent households may close, as is already becoming apparent at the highest income level. Computer Penetration Highest for Dual-Parent Households at Highest Income Level As with Internet access, computers are far more likely to be in households with children and two parents. Married couples with children under 18 years of age own computers at much higher rates (73.2%) than married couples without children (52.5%), male-headed households (45.6%), female- headed households (42.9%), or "non-family" (single or unmarried) households (34.6%). Despite these differences, the disparities among these groups are less dramatic than with Internet access, perhaps because computers are more prevalent as an older and more widely-adopted technology. As with Internet access, single-parent families have also shown the greatest rate of growth in the last two years (30.3% for male-headed households, and 35.3% for female-headed households), suggesting that the gap between dual-parent and single-parent families may begin to close in time. Again, we find differences by location. Female-headed households and male-headed households in central cities are much less likely to own computers (34.9% and 43.1%, respectively) than those in rural or urban areas. By contrast, computer penetration declines in rural areas for households without children (48.0% for family households without children, and 26.2% for single/unmarried households). Computer ownership also varies by income. Particularly notable is the high penetration rate of computers in families earning $75,000 or more. Dual-parent families in this high-income bracket have a 93.1% penetration rate. That is, nearly every household falling into this group has a computer. Computer penetration is also high for other household types at this income level: 84.2% for male-headed households; 82.3% for female-headed households; 82.8% for households without children; and 76.6% for non-family households. Computer penetration drops dramatically at the lowest income levels for almost all households types. The significant exception is for married couples with children: one-third (33.3%) of these families still own computers even at incomes below $15,000. This relatively high penetration rate suggests that computers are becoming an affordable and desirable purchase for many families, even for those in the lowest income bracket. National Telecommunications and Information Administration Economics and Statistics Administration Page 20 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION HOUSEHOLDS WITH COMPUTERS AND INTERNET ACCESS BY STATE The figures on home computer and Internet access at the state level also show wide disparities but remarkably strong growth throughout the country. (Tables I-A and I-B) The gap between the top tier of states and the bottom tier has narrowed for computers and it has remained roughly stable for Internet access. In December 1998, computer ownership ranged from percentages in the low 60s for the top tier of states to the 26% to 28% range for the bottom tier of states. By August 2000, a few states had reached computer ownership percentages in the mid-60s while no state was estimated to have fewer than 37% of homes with computers. Thus, the range between the highest states and the lowest states narrowed by about 10 percentage points, from the high 30s to the high 20s. Internet penetration rates for December 1998 were estimated as low as the 14% to 18% range (Arkansas, Mississippi, Louisiana, and West Virginia), while four states (Colorado, New Hampshire, Utah, and Washington) had reached the 35% to 37% range. Alaska was even estimated at 44%. By August 2000, estimates for six states had reached at least 50% (Alaska, Colorado, Connecticut, Delaware, New Hampshire, and Oregon) and only two states were estimated below 30% (Arkansas and Mississippi). As found for the groups with the lowest penetration rates in terms of income, education, and race/ethnicity, some of the lowest state penetration rates were found to have doubled over this 20 month period. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 21 Table I-A. Percent of Households with Computers, by State: 2000 (Numbers in thousands.) State Total Households Percent with Computers 90% Confidence Interval Alabama 1,742 44.2 2.83 Alaska 219 64.8 2.96 Arizona 1,832 53.5 2.70 Arkansas 1,041 37.3 2.72 California 12,129 56.6 1.20 Colorado 1,636 62.6 2.73 Connecticut 1,235 60.4 3.29 Delaware 290 58.6 3.21 Florida 6,235 50.1 1.48 Georgia 3,066 47.1 2.52 Hawaii 386 52.4 3.61 Idaho 491 54.5 2.71 Illinois 4,566 50.2 1.74 Indiana 2,347 48.8 2.86 Iowa 1,136 53.6 2.95 Kansas 1,010 55.8 2.96 Kentucky 1,614 46.2 2.82 Louisiana 1,650 41.2 2.78 Maine 508 54.7 3.13 Maryland 2,076 53.7 3.04 Massachusetts 2,407 53.0 2.17 Michigan 3,709 51.5 1.86 Minnesota 1,799 57.0 2.91 Mississippi 1,059 37.2 2.81 Missouri 2,155 52.6 2.98 Montana 360 51.5 2.79 Nebraska 637 48.5 3.04 Nevada 690 48.8 2.99 New Jersey 3,091 54.3 1.92 New York 6,971 48.7 1.34 New Hampshire 474 63.7 3.22 New Mexico 667 47.6 2.89 North Carolina 3,047 45.3 2.07 North Dakota 246 47.5 3.01 Ohio 4,351 49.5 1.81 Oklahoma 1,338 41.5 2.69 Oregon 1,280 61.1 2.99 Pennsylvania 4,720 48.4 1.68 Rhode Island 402 47.9 3.23 South Carolina 1,557 43.3 2.98 South Dakota 289 50.4 2.87 Tennessee 2,220 45.7 2.90 Texas 7,353 47.9 1.52 Utah 707 66.1 2.76 Vermont 242 53.7 3.21 Virginia 2,722 53.9 2.74 Washington 2,323 60.7 2.93 National Telecommunications and Information Administration Economics and Statistics Administration Page 22 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Washington, DC 254 48.8 2.97 West Virginia 744 42.8 2.65 Wisconsin 2,031 50.9 2.86 Wyoming 193 58.2 2.91 Table I-B. Percent of Households with Internet Access, by State: 2000 (Numbers in thousands.) State Total Households Percent with Internet 90% Confidence Interval Alabama 1,742 35.5 2.73 Alaska 219 55.6 3.08 Arizona 1,832 42.5 2.68 Arkansas 1,041 26.5 2.49 California 12,129 46.7 1.21 Colorado 1,636 51.8 2.82 Connecticut 1,235 51.2 3.37 Delaware 290 50.7 3.26 Florida 6,235 43.2 1.46 Georgia 3,066 38.3 2.46 Hawaii 386 43.0 3.58 Idaho 491 42.3 2.69 Illinois 4,566 40.1 1.71 Indiana 2,347 39.4 2.79 Iowa 1,136 39.0 2.88 Kansas 1,010 43.9 2.96 Kentucky 1,614 36.6 2.72 Louisiana 1,650 30.2 2.59 Maine 508 42.6 3.11 Maryland 2,076 43.8 3.03 Massachusetts 2,407 45.5 2.16 Michigan 3,709 42.1 1.84 Minnesota 1,799 43.0 2.91 Mississippi 1,059 26.3 2.56 Missouri 2,155 42.5 2.95 Montana 360 40.6 2.74 Nebraska 637 37.0 2.93 Nevada 690 41.0 2.94 New Hampshire 474 56.0 3.33 New York 6,971 39.8 1.31 New Jersey 3,091 47.8 1.92 New Mexico 667 35.7 2.78 North Carolina 3,047 35.3 1.99 North Dakota 246 37.7 2.93 Ohio 4,351 40.7 1.78 Oklahoma 1,338 34.3 2.59 Oregon 1,280 50.8 3.07 Pennsylvania 4,720 40.1 1.64 Rhode Island 402 38.8 3.15 South Carolina 1,557 32.0 2.81 South Dakota 289 37.9 2.78 Tennessee 2,220 36.3 2.80 Texas 7,353 38.3 1.48 National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 23 Utah 707 48.4 2.92 Vermont 242 46.7 3.22 Virginia 2,722 44.3 2.73 Washington, DC 254 39.6 2.90 Washington 2,323 49.7 3.00 West Virginia 744 34.3 2.54 Wisconsin 2,031 40.6 2.81 Wyoming 193 44.1 2.93 A NEW DIMENSION: HIGH-SPEED INTERNET ACCESS One of the bonanzas of rapid technological change has been the development of infrastructure featuring wider bandwidth and faster transmission speeds. This diffusion of the higher-speed access services, generally classified as "broadband," has only just begun.9 This year's report presents the results from the first systematic data collection on user access to high-speed broadband service that has been undertaken in a large scale personal interview survey with a very high response rate.10 In August 2000, 10.7% of online households (about 4.5% of all U.S. households) had broadband- speed access. The remaining 89.3% of online households (37.0% of all U.S. households) connect to the Internet by regular dial-up phone service. Among total broadband households, the overwhelming majority either procure cable modems (50.8%) or DSL (33.7%) (See Figure I-15). Wireless and satellite (4.6%) and other telephone-based technologies such as ISDN (10.9%) account for much lower percentages. Broadband preferences can vary, however, by demographic characteristics. For example, the youngest householders prefer DSL (50.1%) over cable modems (42.7%), whereas other age groups use relatively more cable modems than DSL. Location also matters: in central cities, DSL (38.2%) and cable modem (44.2%) penetrations are relatively close; this contrasts with urban broadband households (which includes central cities and the suburbs), where the cable modem rate (51.1%) significantly exceeds that for DSL (33.6%). Regions also produce some wide variations. For example, the West demonstrates 9 The term "broadband" is used in this study to include the two most common technologies, Digital Subscriber Line (DSL) and cable modems, as well as such technologies as Integrated Services Digital Network (ISDN). These technologies usually feature broadband capabilities although some applications or connections may possess speeds lower than the 200 kilobits per second that the Federal Communications Commission defines as broadband. Although a technology that appears to be on the brink of widespread high-speed capabilities, wireless is more often narrowband in its current applications. 10 Survey respondents who stated that they were online at home were asked whether they accessed the Internet through regular "dial-up" telephone lines or whether they had selected a higher-speed form of connectivity. Where respondents indicated they had obtained a faster connection, they were also asked to identify the type of access used - - Digital Subscriber Lines (DSL), Integrated Services Digital Network (ISDN), cable modems, wireless, or other. Today a relatively small proportion of households access the Internet at higher speeds. The survey results will create an important baseline to measure growth in high speed Internet access. Data relating to speed of Internet access can be found in the Appendix, Figures A15-A22. National Telecommunications and Information Administration Economics and Statistics Administration Page 24 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION a balance between its DSL (43.1%) and cable modem (41.9%) diffusion; this contrasts with the Northeast's clear preference for cable modems (62%) over DSL (24.5%).11 Figure I-15 High Speed Internet Access, 2000 Percent Distribution other telephony 10.9% satellite/wireless 4.6% cable 50.8% DSL 33.7% Broadband penetration differs by location as shown in Figure I-16: central city (12.2%) vs. urban (11.8%) vs. rural (7.3%) vs. U.S. (10.7%). Regional variations occur, as well: the West (11.9%) surpasses the Midwest (9.2%), while the Northeast (11.0%) and South (10.7%) rank between the two. The West has both the nation's highest rate for central city areas (13.0%) and the lowest rate for rural environs (5.9%). Figure I-16 High Speed Internet Access By U.S., Rural, Urban, and Central Cities, 2000, Percent of U.S. Households with Internet Access 14 12.2 11.8 12 10.7 10 8 7.3 6 4 Percent of U.S. Households w/ Internet Access 2 0 US Central cities Urban Rural Source: NTIA and ESA, U .S. Departm ent of Com m erce, using U .S. Bureau of the Census C urrent Population Survey supplem ents. 11 A separate discussion of the roll out of broadband services is contained in the April, 2000, report Advanced Telecommunications in Rural America: The Challenge of Bringing Broadband Service to All Americans produced by the U.S. Departments of Commerce and Agriculture. That report found DSL and cable modem services are more readily available in urban areas. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 25 The penetration rate generally rises as household income increases because broadband access costs more than regular dial-up Internet access. Among those online households with family income of less than $15,000, only 7.7% selected faster access modes, the lowest rate of any income bracket. Conversely, the most affluent households (with incomes $75,000 and greater) exhibit the highest proportion of broadband at 13.8%, or more than double the above low-income penetration rate. The lowest bracket (under $5,000) breaks the pattern, yielding one of the highest percentages (9.9%); this may reflect the presence of students who desire higher transmission speeds for school or simply attach a higher priority to faster access. Educational attainment above the level of high school also affects broadband percentages. Those with college degrees (12.5%) exceed the national penetration rate for all households (10.7%). The households where education levels were high school or less trailed substantially with rates less than 9%. Householders with at least some college (9.9%) ranked in between the two extremes but below the national average. Purchase of faster transmission rates tends to be inversely related to age. The youngest householders boast the highest broadband penetration (12.3%) ­perhaps reflecting the student factor­ while seniors rank the lowest (9.0%). Interestingly, the age group between 45 and 54 can claim one of the highest penetration rates (11.2%). Internet access speeds vary by race and origins as well, with minorities registering both the highest and lowest diffusion rates. Asian American and Pacific Islander households have the highest broadband rate (11.7%), followed by Whites (10.8%). Blacks (9.8%) and Hispanics (8.9%) rank lowest. Both the number of parents and gender type are correlated with broadband access rates. Thus, male householders with children rank highest (12.6%), while female-headed families rank lowest (8.2%). Two-parent families and families without children both exhibit broadband penetrations (10.6%) approximating the national average; non-family households (11.7%) exceed this average by a full percentage point. NON-INTERNET HOUSEHOLDS As of August 2000, 41.5% of the Nation's 105 million households, or 43.6 million homes, had Internet access. Thus, 58.5% of households (61.6 million) were not connected electronically. In contrast, in December 1998 there were 76.5 million unconnected households (73.8%). This movement represents a substantial decline in both the proportion (15.3 percentage points) and number (a drop of 14.9 million) of non-Internet households relative to 20 months earlier. As of August 2000, the number of households that had computers but no Internet access was 10.8 million, down from 16.9 million in December 1998, a decline of 36%. During that time frame, the proportion of PC households without access fell from 38.4% to 19.8%. National Telecommunications and Information Administration Economics and Statistics Administration Page 26 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION A household may not be connected to the Internet for a number of reasons. In terms of its historical experience, a household may have never been connected, or it may have decided to discontinue its Internet use. We address these situations below. WHY HOUSEHOLDS WITH COMPUTERS HAVE NEVER HAD INTERNET ACCESS Within computer households, there are a number of households that have never had an Internet connection. In August 2000, these households totaled 8.7 million. This figure represents a sizeable decline from December 1998, when the count equaled 14.4 million, or 66% higher than the 2000 figure. During the 2000 survey, "never-connected" households provided a number of reasons for not accessing the Internet at home (See Figure I-17). The most dominant reason was "don't want it" (30.8%). The second most common response: "cost, too expensive" (17.3%). Other leading reasons for non-access included "can use elsewhere" (10.4%), "not enough time" (9.1%), and "computer not capable" (6.7%). These data are similar to the breakdown reported from the December 1998 data, which found the reasons to be: don't want (25.7%) followed by reasons of cost (16.8%), use elsewhere (9.6%), and no time (8.7%). In fact, the proportions for these major categories remained basically the same, with the notable exception of the top (don't want it) category, which increased by 5 percentage points. Figure I-17 Reasons for U.S. Households with a Computer/WebTV Never Accessing the Internet, Percent Distribution, 2000 Concern w/ children Not useful 5% 5% No time Cost, too expensive 9% 17% Can use elsewhere 10% Computer not capable 7% Other Lack of computer 6% knowledge 2% Not user friendly Future access planned 4% 3% Problem w/ service provider 1% Don't want 31% Not surprisingly, for low-income households, cost prevails as the most important reason for never connecting. For those households under $15,000, one-third of respondents (32.6%) cited cost, and slightly more than one-quarter cited "don't want it" (26.6%). In contrast, the over-$75,000 bracket reversed the order of importance: "don't want it" (30.8%) surpassed cost (9.4%). The cost/don't- National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 27 want-it nexus occurred at $20,000: those brackets below this threshold ranked cost number one, while those above placed "don't want it" first. Cost affects other groups that have a computer but never had online access, as well. For example, more than one in four (26.1%) of the youngest householders (under 25 years of age) regard Internet connectivity as too expensive, rating it over "don't want it" (19.1%) as the primary reason for non- access in their households. Female householders with children also point to cost as the most important reason for non-access, with 29.9% of respondents citing this factor versus 22.5% stating that they "don't want it." Unlike youngest householders, those in other age brackets regard "don't want it" as more important than cost; this is particularly true for seniors (55 years and older), where "don't want it" (40.4%) significantly outranks cost (14.5%). All major race/ethnic groups regard "don't want it" as more important than the cost factor. This pattern holds for Whites (31.5% vs. 16.4%), Asian Americans and Pacific Islanders (30.4% vs. 13.0%), and Blacks (31.4% vs. 18.2%); it also holds for Hispanics but the differential is much less (25.5% vs. 23.7%). The same relative rankings of "don't want it" vs. cost occur when viewed by levels of educational attainment: the difference is most pronounced for those householders with college degrees (29.3%, 11.6%), some high school (36.9%, 20.4%), or a high-school diploma (32.9%, 17.4%), and least for some college (28.3%, 20.4%). All household types except female-headed families have the same relative rankings, with male householders with children (36.5%, 22.5%) dramatically reversing the order from the 1998 survey (18.7%, 23.2%). While employed households (27.8%, 17.7%) continued the pattern established in December 1998 (23.5%, 16.5%), unemployed households (30.9%, 28.9%) experienced a major swap of rankings compared to the previous survey (13.3%, 38.2%). Data relating to households with computers not using the Internet can be found in the Appendix, Figures A41-A45. In sum, the number and proportion of never-connected households with computers have decreased since December 1998. Overall, the most important reasons are "don't want it" and "cost, too expensive." The former has grown in importance for a number of groups, while cost remains the paramount reason for lower-income households and a few other groups. WHY HOUSEHOLDS WITH COMPUTERS HAVE DISCONTINUED INTERNET ACCESS In August 2000, there were 4.0 million Internet "drop-offs" (i.e, those households that once had but do not currently have electronic access). That number is essentially unchanged from the 4.1 million "drop-offs" in December 1998. Respondents to the August 2000 survey cited several principal reasons for their households' decisions to discontinue their Internet access (See Figure I-18). The leading factor noted was "no longer owns computers" (17.0%). Next in importance were "can use anywhere" (12.8%) and "cost, too expensive" (12.3%). The other key reasons were "don't want it" (10.3%), "not enough time" (10.0%), and "computer requires repair" (9.7%). Also provided as reasons were "moved" (6.1%), National Telecommunications and Information Administration Economics and Statistics Administration Page 28 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION "not useful" (4.2%), "problems with ISP" (2.9%), "concern with children" (2.3%), "not user friendly" (1.5%), and "computer capacity issues" (1.2%). "Other" reasons ­ those that are too heterogeneous to be included elsewhere­ were also given by respondents (9.8%). Figure I-18 Reasons for U.S. Households Discontinuing Internet Access, Percent Distribution, 2000 No longer owns computer Moved 17% 6% Problem w/ service Computer requires provider repair 3% 10% Computer capacity Don't want issues 10% 1% Not user friendly Cost, too expensive 2% 12% Other 10% Not useful 4% Concern w/ children 2% Can use elsewhere No time 13% 10% These results reflect changes from the answers given in the December 1998 survey. In 1998, respondents identified "cost, too expensive" (15%) as the most important reason for dropping off the network. In 1998, the reason "no longer owns computer" ranked second (14%) and "can use anywhere" ranked fourth (9%). "Not enough time to use it" registered higher percentage (10% vs. 9%) in 2000 but slipped from third in 1998 to fourth in 2000. Respondents accorded "computer requires repair" about double the response rate from December 1998 (5%) to August 2000 but had the same ranking (sixth). "Don't want it" was the fifth most popular reason in 1998 (7%). A more disaggregated look at the August 2000 survey results reveals additional insights. Data relating to discontinued Internet access can be found in the Appendix Table 1. As a reason for discontinuing Internet access, "no longer owns a computer" ranks number one and cost is the number two reason for all income brackets except the highest ($75,000+). The most affluent income category respondents led with "can use elsewhere," "computer requires repair," "don't want it," and "not enough time." Looking at different race and ethnic groups, "no longer owns computer" ranked highest for White households, followed by "can use elsewhere" and "cost." For Blacks, the ranking was "cost," "no longer owns," and "use elsewhere." Hispanic households cited "elsewhere," "no longer owns," and "cost." Focusing on the level of educational attainment, the elementary education, some high school education, and some college education groups all identified the same two top reasons: "no longer National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 29 owns computer" and "cost." The other two groups saw it differently. The high-school-degree group ranked cost first and "no longer owns" second. The college-degree group picked out "use elsewhere," followed by "no longer owns." An examination of household types reveals some distinct differences. Married couples with children ranked "cost" and "not enough time" at the top of their list of major reasons. This contrasts with other household types, whose number one reason was "no longer owns computer": male householders with children, female householders with children, and non-family households. All age categories except 35-44 year olds (for whom cost ranked first) rated "no longer owns computer" as the most important reason for disconnecting. The second-ranked reasons varied greatly: "can use elsewhere" for under-25 and 25-34 year olds; "computer requires repair" for 45-54 year olds; and "don't want it" for those householders at least 55 years old. Thus, although variations exist for some specific demographic groups, August 2000 survey respondents generally identified an absence of a computer, reliance on other locations, and cost as the most important reasons for their households discontinuing their home Internet access. These reasons contrast with the responses of never-connected households, who cited "don't want it" as the most compelling reason for their non-access. National Telecommunications and Information Administration Economics and Statistics Administration Page 30 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Table I-1 Percent of Households with a Computer December 1998 August 2000 Point change Expansion rate All 42.1 51.0 8.9 21.1 White Non-Hispanic 46.6 55.7 9.1 19.5 Black Non-Hispanic 23.2 32.6 9.4 40.5 Asian Amer. & Pac. Isl. 55.0 65.6 10.6 19.3 Hispanic 25.5 33.7 8.2 32.2 Less than $15,000 14.5 19.2 4.7 32.4 $15,000 - 24,999 23.7 30.1 6.4 27.0 $25,000 - 34.999 35.8 44.6 8.8 24.6 $35,000 - 49,999 50.2 58.6 8.4 16.7 $50,000 - 74,999 66.3 73.2 6.9 10.4 $75,000 and above 79.9 86.3 6.4 8.0 Less than High School 12.5 18.2 5.7 45.6 High School Graduate 31.2 39.6 8.4 26.9 Some College 49.3 60.3 11.0 22.3 College Graduate 66.9 74.0 7.1 10.6 Post Graduate 72.2 79.0 6.8 9.4 Rural 39.9 50.4 10.5 26.3 Urban 42.9 51.5 8.6 20.0 Central City 38.5 53.7 15.2 39.5 Bold indicates above the national average 8.9 point change and 21.1 % expansion rate. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 31 Table I-2 Percent of Households with Internet Access December 1998 August 2000 Point change Expansion rate All 26.2 41.5 15.3 58.4 White Non-Hispanic 29.8 46.1 16.3 54.7 Black Non-Hispanic 11.2 23.5 12.3 109.8 Asian Amer. & Pac. Isl. 36.0 56.8 20.8 57.8 Hispanic 12.6 23.6 11.0 87.3 Less than $15,000 7.1 12.7 5.6 78.9 $15,000 - 24,999 11.0 21.3 10.3 93.6 $25,000 - 34.999 19.1 34.0 14.9 78.0 $35,000 - 49,999 29.5 46.1 16.6 56.3 $50,000 - 74,999 43.9 60.9 17.0 38.7 $75,000 and above 60.3 77.7 17.4 28.9 Less than High School 5.0 11.7 6.7 134.0 High School Graduate 16.3 29.9 13.6 83.4 Some College 30.2 49.0 18.8 62.3 College Graduate 46.8 64.0 17.2 36.8 Post Graduate 53.0 69.9 16.9 31.9 Rural 22.2 38.9 16.7 75.2 Urban 27.5 42.3 14.8 53.8 Central City 24.5 37.7 13.2 53.9 Bold indicates above the average 15.3 point change and 58.4 % expansion rate. National Telecommunications and Information Administration Economics and Statistics Administration Page 32 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 33 PART II USE OF THE INTERNET BY INDIVIDUALS As of August 2000, 116.5 million Americans were online-31.9 million more than only 20 months earlier. Internet users accounted for 44.4% of the U.S. population (age 3 and older), up from 32.7% in December 1998. This pattern of increasing Internet use held true at all income and education levels, for all age groups, for both men and women, for the employed and the unemployed and across all race and ethnic groups. Groups that have historically been digital "have nots"-individuals who come from low-income households, individuals with low levels of education, minority groups (particularly Blacks and Hispanics), and older people are participating in this dramatic increase in Internet usage, but their use rates remain below the national average. Whereas Part I examined household access, this section examines individual use. The person-based data and household-based data yield related, but not identical, rates of Internet use for factors that are common to the two data sets, such as income and race. Why these differences occur is explained in Box II-1 on page 35. Person-based data offer an understanding of ways in which individuals use the Internet. They offer the ability to examine demographic characteristics, such as age and gender, that are unique to individuals with no logical correspondence at the household level. These data offer insight into where individuals use the Internet-at home, outside the home, or in multiple places. And, where individuals are using the Internet from a location away from their home, these data provide insight into where they are getting that access. Finally, these data offer some information about the activities that individuals are undertaking while they are online. Key insights offered by these data include: * Individuals age 50 and older are among the least likely to be Internet users with Internet use rate of 29.6% in 2000. This age group, however, saw faster growth in Internet use than the country as a whole, with Internet use growing at a rate of 53% compared to 36% for the country as a whole. Age, however, is only part of the story. In August 2000, individuals age 50 and older were almost three times as likely to be Internet users if they were in the labor force. * In August 2000, Internet use rates in the aggregate were virtually identical for men (44.6%) and women (44.2%). In December 1998, there was a gender gap in this measure-34.2% for men versus 31.4% for women. * For some groups with Internet use rates below the national average, use at locations outside the home appears to be a factor in the growth of Internet use rates. Nationwide, a greater share of people used the Internet from their homes in August 2000 than in December 1998. However, Black Internet users were more likely than other Internet users to rely exclusively on Internet access from outside their homes. National Telecommunications and Information Administration Economics and Statistics Administration Page 34 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION * Most people who used the Internet from outside their homes reported using it at work or at school. Unemployed individuals were more likely to use it from another person's computer, or libraries. * E-mail is still the Internet's most widespread application-79.9% of Internet users used e- mail. Among other online activities, shopping and bill paying saw the fastest growth. Low income unemployed people were the most likely to report using the Internet to look for jobs. Person-based information is likely to become an even more important complement to the household- based measures in the future. We are already seeing the emergence of a world where Internet access is mobile. It travels with the individual rather than being a function of a physical place. For years, laptop computers have offered processing power and Internet access to individuals wherever they happened to be-at home, in the office, in hotels across the globe. Mobile devices, such as personal digital assistants and mobile phones, now offer Internet access anywhere via wireless connections. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 35 Box II-1 The Relationship Between the Household- and Person-Based Measures Household surveys provide information on both entire households and the individual persons within those households. The person data provide information on the number of people who have access to the Internet at home, how many are using that access, the extent of access at other locations, and the types of activities they are pursuing on the Internet. As discussed in Part I, the number of households connected to the Internet rose from 26.2% in December 1998 to 41.5% in August 2000. But the proportion of Americans living in homes with Internet access is 13% larger than the proportion of households connected because households with Internet connections have 13% more people per household than the national average (line 4, Table II-9). As shown in the second pair of bars in Figure II-1, the share of Americans in homes online has surged from 30.0% in December 1998 to 46.7% in August, a gain of 0.84 a month. At that rate, a majority of Americans will have Internet access at home by the end of the year. Figure II-1 Different Perspectives on Internet Access and Use 100 90 80 70 60 50 46.7 44.4 41.5 Percent 40 35.7 32.7 30.0 30 26.2 22.3 20 10 0 Households Persons with Home Persons Using Home Persons Using Access Access Anywhere 1998 2000 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. Seventy-six percent of people living in homes with Internet access were actually using the Internet from home (line 6, Table II-8). Thus, the August survey found that 35.7% of Americans were actually using the Internet at home, up from 22.3% in December 1998. Another 8.6% of Americans in August were using the Internet but not from home. When they are added to those who use the Internet from home, the total share of the population using the Internet from any location stood at 44.4% in August, up from 32.7% twenty months earlier. If growth continues at this rate-almost 0.6% more Americans online per month-more than half of all Americans will be using the Internet by mid-2001. National Telecommunications and Information Administration Economics and Statistics Administration Page 36 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION INTERNET USE AMONG INDIVIDUALS Almost 32 million people became Internet users during the 20 months between December 1998 and August 2000. As Figure II-2 shows, Internet use increased across the age distribution. More people at all ages were using the Internet. This figure, however, also illustrates that although Internet use increased across the board, Internet use rates are not equal across all age groups. A person's age as well as factors such as household income, race/ethnicity, gender, educational attainment, and labor force participation matter in the Internet use equation. This section explores these factors. Figure II-2 Broad Increases in Internet Use Since 1998 100 90 80 70 August 2000 60 50 40 Internet Use Rate (%) 30 December 1998 20 10 0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 75 78 Age Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population INCOME While individuals in all income groups were more likely to be Internet users in 2000 than in 1998, Internet use rates were higher in higher income brackets. (Figure II-3.) Only 18.9% of individuals who lived in households with annual incomes of less than $15,000 were Internet users in August 2000. In contrast, 70.1% of people who lived in households where the annual income was greater than $75,000 reported using the Internet. Middle income groups saw the largest point gains while the lowest income groups had the fastest expansion rates, albeit from low starting levels. (See Table II-1) National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 37 Figure II-3 Internet Use by Income ($000) 100 90 80 70.1 70 58.9 57.7 60 50 46.5 45.5 40 35.7 34.7 Internet Use Rate (%) 30 25.5 25.3 18.9 18.4 20 13.7 10 0 Under $15 $15 to 24.9 $25 to 34.9 $35 to 49.9 $50 to 74.9 $75 + Household Income Dec. 1998 Aug. 2000 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population RACE AND ETHNICITY Although Internet use is growing across the board, groups of different racial and ethnic backgrounds still use the Internet to differing degrees. (Figure II-4.) In August 2000, Whites (50.3%) continued to be the most likely to use the Internet, followed by Asian American/Pacific Islanders (49.4%), Blacks (29.3%), and Hispanics (23.7%). During the 20-month period between the two surveys, Whites gained 12.7 percentage points and Asian American/Pacific Islanders gained 13.6 percentage points in the share of their populations using the Internet. Over the same period, Blacks gained 10.3 percentage points, and Hispanics gained 7.1 percentage points. Blacks were 13.7 percentage points behind the national average in December 1998 and in August 2000 they were 15.1 percentage points behind the national average. Similarly, in December 1998, Hispanics were 16.1 percentage points behind the national average and in August 2000 they were 20.7 percentage points behind. National Telecommunications and Information Administration Economics and Statistics Administration Page 38 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure II-4 Internet Use by Race/Ethnicity 100 90 80 70 60 50.3 49.4 50 44.4 37.6 40 35.8 32.7 29.3 Internet Use Rate (%) 30 23.7 19.0 20 16.6 10 0 Total White Black Asian Hispanic American/Pacific Dec. 1998 Aug. 2000 Islander Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Reviewing the data by race and Hispanic origin brings out the lack of close correspondence between the household-based measure of access to the Internet and the person-based measures of use. For example, although 56.8 percent of Asian American/Pacific Islander households had Internet access, only 49.4 percent of persons in that group were using the Internet. In contrast, the rates of personal use were higher for Whites and Blacks than their household connection rates. Among Whites, 46.1 percent of their households had online connections but 50.3% of White persons were Internet users at some location. The gap was even larger for Blacks: only 23.5% of their homes were online, but 29.3% of Black persons were Internet users. Only for Hispanics were the two percentages essentially the same at 23.6% and 23.7%, respectively. Figure II-5 Household Access Rates by Race/Ethnicity Do Not Closely Track Internet Use by Persons 100 90 80 70 60 56.8 50.3 49.4 50 46.1 Percent 40 29.3 30 23.6 23.7 23.5 20 10 0 Hispanic Blacks White Asian American/Pacific Islander Share of Households with Internet Access Share of Persons Using Internet Anywhere Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 39 Why do Whites have personal Internet usage rates at least as high as the rates for persons of Asian and Pacific Islander background despite having rates of household connections 11 points lower? Why do Blacks have household rates of Internet access comparable to Hispanics but much higher personal use rates? As delineated in Table II-9, three factors come into play: the relative family size of households with Internet access, the share of persons with home access who actually use the Internet at home, and the share of persons who use the Internet only outside the home. The difference in household size for online households is larger for Whites and Blacks. Whites also have the highest share of people who live in homes with Internet access who actually make use of that access, while Hispanics have the lowest share. Finally, Blacks have the highest share of people who access the Internet only outside the home (10.4%), followed by Whites at 8.6%. Only 7.5% of Hispanics and Asian American and Pacific Islanders use the Internet exclusively outside the home. (See Figure II-14.) GENDER Over the 20 months prior to August 2000, women raised their Internet use rates fast enough to close the gap with men. In December 1998, 34.2% of men and 31.4% of women were using the Internet. By August 2000, 44.6% of men and a statistically indistinguishable 44.2% of women were Internet users. Underlying the closing aggregate gender gap are some gender differences by age. (Figure II-6.) For both surveys, in the early years of life, boys and girls are equally likely to be Internet users. The small gap in favor of females of college age widened by 2000. During the years of prime labor force participation, while men were more likely than women to be Internet users in 1998, twenty months later the situation had reversed-in August 2000 women were more likely than men to be Internet users. For older adults in both surveys, men were more likely than women to be online. Figure II-6 Internet Use by Gender and Age 100 90 80 Women in 2000 70 60 50 Men in 2000 40 Internet Use Rate (%) 30 Men In 1998 Women in 1998 20 10 0 3 5 7 9 11 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 Age Male 1998 Female 1998 Male 2000 Female 2000 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. National Telecommunications and Information Administration Economics and Statistics Administration Page 40 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION In August 2000, males and females had very similar Internet use rates in all but one race/ethnic group-Asian American/Pacific Islanders. Among Asian American/Pacific Islanders, males had higher Internet use rates than females. (Figure II-7) Figure II-7 Internet Use by Gender and Race/Ethnicity 100 90 80 70 60 50.7 52.7 49.9 50 44.6 44.2 46.1 40 27.9 30.5 Internet Use Rate (%) 30 22.7 24.7 20 10 0 Total White Asian Black Hispanic American/Pacific Male Female Islander Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey EDUCATIONAL ATTAINMENT In both 1998 and 2000, Internet use rose with higher levels of education.12 (Figure II-8.) Adults with no more than an elementary level of education have Internet use rates of less than 4%. People whose highest level of education is a bachelors degree or higher had the highest Internet use (74.5%). The percentage point gain of this group (13 points between 1998 and 2000) was less than that of adults with only some college education (16 percentage points). 12 Educational attainment refers to the highest level of education completed. Data shown exclude individuals age 3 to 24 because a large portion of individuals in these groups are still in school. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 41 Figure II-8 Internet Use Rates by Educational Attainment (Age 25 and Older) 100 90 80 74.5 70 61.1 60 54.2 50 38.6 40 30.6 Internet Use Rate (%) 30 19.2 20 12.7 10 6.2 1.6 3.7 0 Elementary Not a High School High School Some College Bachelor's Degree Graduate Graduate or More Dec. 1998 Aug. 2000 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. AGE For the purpose of this analysis, age categories were grouped to roughly correspond to important periods in peoples lives-Children (age 3-8), Youth (age 9-17), College/Early Work Force (age 18-24), Work Force (age 25-49), and Late Work Force/Retirement (age 50+). There has been strong growth in the personal use rates in all age categories except young children (age 3-8). (Figure II-9.) People over the age of 50 had the next lowest rate of Internet use in 2000 (29.6%) with a 10.3 percentage point increase over 1998. The remaining three age categories had Internet use rates that are higher than the national average of 44.4%. Figure II-9 Internet Use by Age Group 100 90 80 70 60 56.8 53.4 55.4 50 43.0 44.3 40.9 40 29.6 Internet Use Rate (%) 30 19.3 20 15.3 11.0 10 0 3 to 8 9 to 17 18 to 24 25 to 49 50 + Dec. 1998 Aug. 2000 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. National Telecommunications and Information Administration Economics and Statistics Administration Page 42 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Age 3 to 8 Years Young children, not surprisingly, had the lowest Internet use rate in 2000 (15.3%) and the smallest increase in use since 1998 (4.3 percentage points). In 2000, 15.7% of girls and 14.9 percent of boys in this age groups were Internet users. (Table II-2.) The race/ethnicity patterns track the national use rate patterns-Whites (18.5%), Asian American/Pacific Islanders (14.4%), Blacks (10.2%), and Hispanics (8.7%). Internet use rates increase with household income. Young children from households with income less than $15,000 had an Internet use rate of 5.4% in 2000-9.9 percentage points behind the national average for this group. At the other extreme, households with incomes greater than $75,000 had an Internet use rate of 21.8%. (Table II-2.) Age 9 to 17 Years Internet use rates picked up among youths (age 9-17) with the national average for this age group increasing from 43.0% in December 1998 to 53.4% in August 2000 (a 24% growth in the use rate). Thus, the average use rate for this group was above the national average in both December 1998 and August 2000. (Table II-3.) There was little difference in Internet use between boys (52.9%) and girls (53.9%) in 2000. Again, race/ethnicity patterns were similar to the national average, with Whites (63.1%) and Asian American/Pacific Islanders (58.6%) showing higher use rates than Blacks (34.2%) and Hispanics (31.4%). Blacks, however, saw relatively rapid growth in their rate of Internet use (63%) from December 1998 to August 2000 compared with Asian American/Pacific Islanders (45%), Hispanics (33%), and Whites (20%). Individuals who lived in households where income was less than $15,000 (28.8%) and those who lived in households where income was between $15,000 and $24,999 (36.3%) had Internet use rates below the national average. Individuals who lived in households where income was $35,000 or more had Internet use rates greater than the national average for this age group. Age 18 to 24 Years Individuals age 18 to 24 also saw Internet use rates for both December 1998 (44.3%) and August 2000 (56.8%) that were above the national averages. (Table II-4.) In this age group, women (59.6%) had higher Internet use rates than men (54.1%) in 2000. In August 2000, the Internet use rates for Black (41.5%) and Hispanics (32.4%) in this age group were considerably higher than use rates for these race/ethnicity groups in the population at large. However, these groups still lag behind Whites (65.0%) and Asian American/Pacific Islanders (72.9%). Of these two groups, Blacks appear to be gaining ground relatively rapidly with a growth National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 43 in the use rate of 55% over the 20 month period. This compares to 30% growth for Asian American/Pacific Islanders, 28% for Hispanics, and 25% for Whites. In this age group, individuals at all household income levels had Internet use rates close to or above the Internet use rate for the population as a whole- Less than $15,000 (41.9%), $15,000 to $24,999 (43.5%), $25,000 to $34,999 (52.4%), $35,000 to $49,999 (59.9%), $50,000 to $74,999 (67.4%), and $75,000 and above (78.2). This flattening of the income gradient suggests that income is less important than other factors in Internet use among 18 to 24 year olds. (Figure II-10.) Figure II-10 Internet Use by Income Age 18-24 100 90 78.2 80 67.4 70 65.5 59.3 60 55.3 52.4 47.9 50 41.9 43.5 38.7 40 33.5 34.8 Internet Use Rate (%) 30 20 10 0 Less than $15,000 - $25,000 - $35,000 - $50,000 - $75,000 and $15,000 $24,999 $34,999 $49,000 $74,999 above Dec. 1998 Aug. 2000 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. Age 25-49 Years Labor force participation appears to be an important component in Internet uptake for this group and even more so for individuals age 50 and older. These two age brackets were separated into two groups, those in the labor force and those outside the labor force.13 (Figure II-11.) (Tables II-5 and II-6.) 13 The labor force includes both the employed and the unemployed (i.e., not employed , but looking for work). Since most of the unemployed move in and out of the employment, they are generally more likely to be employed than those not in the labor force. National Telecommunications and Information Administration Economics and Statistics Administration Page 44 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure II-11 Internet Use Age 25-49 and Labor Force Status 100 90 80 70 58.4 60 50 43.7 39.3 40 Internet Use Rate (%) 30 25.4 20 10 0 25 to 49 LF 25 to 49 NLF Dec. 1998 Aug. 2000 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. The Internet use rate for all 25 to 49 year olds was 55.4%, up from 40.9% in December 1998. Those in the labor force were more likely to be Internet users. Their Internet use rate was 58.4% compared to 39.3% for those not in the labor force in August 2000. Women were more likely than men to be Internet users regardless of labor force status, but the gap between the genders was larger for those not in the labor force. In 2000, 60.8% of women and 56.2% of men were Internet users among 25-49 year olds who were in the labor force. Among those not in the labor force in this age bracket, however, the use rate for women was 42.6% and the use rate for men was 28.6%. Blacks and Hispanics were below the national average in Internet use regardless of labor force status, but Blacks and Hispanics who were not in the labor force were even further below the national average. For Blacks in the labor force, the use rates was 40.3%, but for those not in the labor force it was 18.9% in August 2000. Hispanics age 25 to 49 who were in the labor force had an Internet use rate of 29.8%, while those not in the labor force had a use rate of 16.5%. Among those not in the labor force, Blacks had 100% growth in their use rate over 1998 and Hispanics saw an 85% increase in their use rate. This is consistent with aggregate patterns of faster growth in the groups that are the below the national average and growing from a smaller base. Age 50 and Over For those age 50 and older the importance of labor force participation is even more striking than it was for those age 25 to 49. Among those age 50 and older, Figure II-12 reveals an almost three-fold ratio between the Internet use of those in the labor force (46.4%) and those not in the labor force (16.6%). (Tables II-7 & II-8.) National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 45 Figure II-12 Internet Use Age 50 + and Labor Force Status 100 90 80 70 60 50 46.4 40 33.5 Internet Use Rate (%) 30 20 16.6 8.5 10 0 50 + LF Dec. 1998 Aug. 2000 50 + NLF Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. Individuals who are over 50 years old are among the least likely to be Internet users-the Internet use rate in this group was only 29.6% in 2000. In August 2000, however, the rate for individuals age 50 and older who were still in the labor force (46.4%) was much closer to the 58.4% for 25 to 49 year olds who were in the labor force. This suggests that the lower Internet use for ages beyond 50 shown in Figure II-2 is associated with labor force attachment, as well as with age. Labor force participation also affect the gender differences evident for individuals age 50 and older. In August 2000, men (46.0%) and women (46.8%) who were still in the labor force were equally likely to be Internet users. However, men (18.1%) had higher Internet use rates than women (15.6%) for those not in the labor force. This gender difference may result from higher previous labor force participation by men relative to women in this age group and from the larger number of women relative to men who are over 70 years old. LOCATION OF INTERNET ACCESS Although this survey did not collect data on the intensity or the quality of Internet use, where an individual uses the Internet, at home, away from home, or both, probably reflects some degree of quality of his or her Internet access. An individual who uses the Internet at his or her home typically has the opportunity to use the technology more frequently and for longer periods of time than if he or she uses it only at a school, library, or community center. In August 2000, 25.0% of the population used the Internet only from home, an increase from 15.8% in December 1998. The share of the population using the Internet from both home and outside the home also increased-from 6.5% to 10.7%. In contrast, use from only outside the home declined from 10.5% to 8.7%. (Figure II-13.) National Telecommunications and Information Administration Economics and Statistics Administration Page 46 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure II-13 Internet Access by Location Aug. 2000 25.0 10.7 8.7 55.6 Dec. 1998 15.8 6.5 10.5 67.3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Only at Home Both Only Outside the Home No Use Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. The aggregate pattern of primary and increasing Internet use from the home is not, however, consistent across demographic groups. (Figure II-14.) Although 8.7% of Internet users nationwide used the Internet only from outside their homes, 10.4% of Blacks used the Internet only from locations outside their home. Figure II-14 Internet Use by Location and Race/Ethnicity Asian American/Pacific 26.6 15.3 7.5 50.6 Islander White 29.1 12.6 8.6 49.7 Hispanic 12.1 4.0 7.6 76.3 Black 13.7 5.2 10.4 70.7 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Only at Home Both Only Outside No Use Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. LOCATIONS OF INTERNET ACCESS OUTSIDE THE HOME People who use the Internet from outside the home use it from a variety of locations. The most common non-home Internet use site is an individual's place of work-12.3% of the population (and National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 47 23.9% of the people who held jobs) used the Internet at work in August 2000.14 At school (K-12) (3.7%) was the second most commonly reported site of Internet use in August 2000 despite there being fewer children in school that month. "Someone else's computer" (2.7 %) was another possible place of access as were public libraries (1.9%) and "other school" (1.6%). Similarly, work was the most frequently reported site of outside the home Internet use for each of the race/ethnic groups. Asian Americans and Pacific Islanders (15.4%) and Whites (14.1%) reported having access to the Internet at work more often than Blacks (8.1%) and Hispanics (5.6%). On the other hand, Blacks (2.9%) and Asian Americans and Pacific Islanders (2.3%) were more likely to be using the Internet at public libraries than Whites (1.7%), and Hispanics (1.7%). Men (13.2%) were more likely than women (11.6%) to report using the Internet at work. The likelihood of reporting work as a place to use the Internet increases with household income. In August 2000, 2.1% of individuals whose household incomes were less than $15,000 reported using the Internet at work-this was 10.2 percentage points behind the national average of 12.3%. As household incomes rose, so did Internet use at work-4.0% for individuals with household incomes between $15,000 and $24,999, 7.8% for individuals with household incomes of $25,000 to $34,999, and 11.1% for those with household incomes from $35,000 to $49,999. Individuals with household incomes between $50,000 to $74,999 (16.5%) and those with household incomes greater than $75,000 (29.6%) reported work use at rates higher than the national average. Public libraries appear to be a more important place of Internet use for the unemployed than for those who had jobs. In August 2000, 4.2% of unemployed individuals reported using the Internet from the public library compared to 1.8% of employed individuals and 1.7% of those who were not in the labor force. ONLINE ACTIVITIES The most frequent online activity among Internet users in August 2000 was e-mail. (Figure II-15) About 80% of people with Internet access reported regularly using e-mail. More than half of the people online also used the Internet regularly to search for information. Making phone calls was the least common online activity; less than 6% of Internet users reported regularly using the Internet to make calls. 14 Reported Internet use from "school (K-12) and "other school" was lower in August 2000 than in December 1998. The authors believe this is a function of seasonal factors-i.e., students who were not in school in August when the 2000 survey was conducted appear to be influencing the frequency with which "schools (K-12 )" and "other schools" were reported as locations for Internet use. Only August 2000 data are shown. Evidence of this seasonality problem can be seen from the fact that the number of people age 18 to 24 who reported being in school dropped from 14 million in December 1998 to 12 million in August 2000. The next U.S. Bureau of the Census Survey on computer and Internet use is scheduled for September 2001 when data on school use should be less problematic. National Telecommunications and Information Administration Economics and Statistics Administration Page 48 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure II-15 Online Activities 5.7 Make Phone Calls 6.0 9.1 Other 10.3 16.1 Search for Jobs 13.6 30.0 Shop and Pay Bills 19.7 35.3 Do Job Related Tasks 35.8 35.4 Take Course 39.7 43.2 Check news 40.7 58.8 Search for Information 60.0 79.9 E-mail 70.0 1998 2,000 0 10 20 30 40 50 60 70 80 90 100 Percent of Internet Users Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. Online shopping and bill paying were not the most common of online activities-only 30% of Internet users reported regularly shopping or paying bills online in 2000. Nonetheless, this activity saw the greatest increase (52%) between December 1998 and August 2000. ONLINE ACTIVITIES OF HOME INTERNET USERS E-mail continues to be the most common use of the Internet among people who use the Internet at home.15 In August 2000, 84.8% of people using the Internet at home used it for e-mail, up from the 77.9% in December 1998. In August 2000, one-third of Internet users shopped and paid bills online (33.6%), up from the almost one-quarter of the Internet population in 1998 (24.5%). Most other uses are relatively unchanged from December 1998. The percentage of those who go online to check news, weather, or sports, is about the same, at 46%, while those using the Internet to search for information hovered around 59%, and those using the Internet for job-related tasks remained about 28%. As the near-universal application, e-mail use showed little variation across income and education categories. Use of the Internet for e-mail by home Internet users in the lowest income households were within a percentage point or two of those using the Internet in the highest income households-all were above 82%. Looking at e-mail use from the perspective of education level, 90.1% of those with bachelor's degrees or higher used the Internet for e-mail, but 80.1% of those with an elementary-school 15 Internet use rates shown in this section represent a ratio of those individuals engaging in the respective online activities as a share of Internet users who use the Internet at home. In August 2000, 93.8 million people or 35.7% of the population used the Internet at home. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 49 education did, as well. In August 2000, 84.2% of those with some high school, but not a degree, used e-mail. The August 2000 data showed that more women (86.8%) used the Internet for e-mail than men (82.8%). More women (96.6%) used the Internet for communicating with friends and family than men (93.6%). More men (34.2%) than women (24.7%) used e-mail for job-related activities, and more men (34.4%) than women (28.8%) used e-mail for hobbies and other special interests. Racial differences played a small role in how e-mail is used. More Blacks used e-mail at home for job-related activities than Whites (32.5% vs. 29%), and this is also the case for usage for educational purposes: 38.1% for Blacks vs. 25.9% for Whites. Men and women were slightly different in their use for online shopping and bill paying: men (32.7%) and women (34.5%). Men used the Internet more for job-related tasks. In August 2000, 30.2% of men used it for that purpose in contrast to 24.4% of women. Men used the Internet more to check news (54.3%) than did women (38.0%), but women went online more often to take courses or do research for school, 34.6% contrasted with 30.8% for men. Men and women used the Internet equally in their searches for information, each about 58%. Online shopping and bill paying has caught on particularly with 25 to 34 years olds. Nearly half of the people in this age group (47.7%) used the Internet for these activities. Thirty-five to forty-four year olds followed closely with a use rate of 42.9%. Whites used the Internet for shopping and bill paying more than Blacks, 34.4% and 27.5% respectively. In addition, 16.4% of at home Internet users in 2000 went online to look for jobs, up from 14.5% in 1998. ONLINE ACTIVITIES OF OUTSIDE THE HOME INTERNET USERS The pattern of online activities by people who used the Internet outside the home differed from that of home users.16 With the exception of job related activities, a smaller share of people who used the Internet outside the home reported engaging in each of the measured activities. Among Internet users outside the home, 50.2% were online for job-related tasks, an increase from 44.6% in 1998. In 2000, 32.2% of people using the Internet from outside the home did so to take courses-down from 38.8% in December 1998. In 2000, 45.0% of people using the Internet did so to search for information; in 1998, the figure was 50.1%. People using the Internet outside the home to check news, sports, and weather also dropped slightly. On the other hand, e-mail use was up to 59.1% in 2000 from 53.6% in 1998. Online shopping and bill paying was 10.4% in 2000 up from 7.5% in 1998. 16 Internet use rates shown in this section are represent a ratio of those individuals engaging in the respective online activities as a share of Internet users who used the Internet outside the home. In August 2000, 50.9 million people or 19.4 percent of the population used the Internet outside their homes. National Telecommunications and Information Administration Economics and Statistics Administration Page 50 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Outside the home, Whites were more likely to go online for e-mail than Blacks, 61% vs. 51%. Blacks were more likely to use the Internet outside the home than Whites to take a course (41% v. 29.7%), and were more likely to use the Internet to search for jobs (14.7% v. 7.2%). In August 2000, an estimated 4.3 million people used the Internet outside the home to search for jobs. This represented 8.4% of the 50.9 million people who used the Internet away from home. Those with lower incomes were much more likely to search for jobs using the Internet. Among those with household incomes below $25,000 using the Internet away from home, more than 12% were searching for jobs, almost twice the 6.5% rate of those with incomes above $75,000. (Figure II-16.) Figure II-16 The Percent of Internet Users Searching for Jobs on the Internet Declines as Income Increases 30 27 24 21 18 15 12.6 Percent 12.1 12 10.4 9.2 9 8.0 6.5 6 3 0 $0-14,999 $15-24,999 $25-34,999 $35-49,999 $50-74,999 $75,000+ Household Income Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 51 Table II-1 Internet Use Individuals Age 3 and Older Dec. 1998 Aug. 2000 Internet Use Percentage Growth in Point Use Rate Internet Total Internet Total Dec. Aug. Difference Users Users 1998 2000 Total Population 84,587 258,453 116,480 262,620 32.7 44.4 11.6 36 Male 43,033 125,932 56,962 127,844 34.2 44.6 10.4 30 Female 41,555 132,521 59,518 134,776 31.4 44.2 12.8 41 White Non-Hisp. 69,470 184,980 93,714 186,439 37.6 50.3 12.7 34 Black Non-Hisp 6,111 32,123 9,624 32,850 19.0 29.3 10.3 54 Asian/Pacific Islanders 3,467 9,688 5,095 10,324 35.8 49.4 13.6 38 Hispanic 4,887 29,452 7,325 30,918 16.6 23.7 7.1 43 Employed* 56,790 133,516 77,507 136,756 42.5 56.7 14.2 33 Not Employed* 1,647 5,726 2,698 5,961 28.8 45.3 16.5 58 Not in the Labor Force 14,411 70,924 20,661 71,232 20.3 29.0 8.7 43 Less than $15,000 5,170 37,864 6,057 32,096 13.7 18.9 5.2 38 $15,000 - $24,999 5,623 30,581 7,063 27,727 18.4 25.5 7.1 38 $25,000 - $34,999 8,050 31,836 11,054 31,001 25.3 35.7 10.4 41 $35,000 - $49,999 13,528 39,026 16,690 35,867 34.7 46.5 11.9 34 $50,000 - $74,999 19,902 43,776 25,059 43,451 45.5 57.7 12.2 27 $75,000 and above 24,861 42,221 36,564 52,189 58.9 70.1 11.2 19 Elementary 206 12,529 452 12,253 1.6 3.7 2.1 131 Not a High School Graduate 1,022 16,510 2,030 16,002 6.2 12.7 6.5 105 High School Graduate 10,961 57,103 17,425 56,889 19.2 30.6 11.4 59 Some College 16,603 43,038 24,201 44,628 38.6 54.2 15.6 40 Bachelors Degree or Higher 26,571 43,509 34,083 45,755 61.1 74.5 13.4 22 3 to 8 2,680 24,282 3,671 23,962 11.0 15.3 4.3 39 9 to 17 15,396 35,821 19,579 36,673 43.0 53.4 10.4 24 18 to 24 11,356 25,662 15,039 26,458 44.3 56.8 12.6 28 National Telecommunications and Information Administration Economics and Statistics Administration Page 52 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Table II-1 Internet Use Individuals Age 3 and Older Dec. 1998 Aug. 2000 Internet Use Percentage Growth in Point Use Rate Internet Total Internet Total Dec. Aug. Difference Users Users 1998 2000 25 to 49 41694 101836 56433 101946 40.9 55.4 14.4 35 50 + 13669 70852 21758 73580 19.3 29.6 10.3 53 Source: U.S. Bureau of the Census, Current Population Survey, December 1998 and August 2000. Notes: The sum of the components may not equal the total due to rounding. * Age 16 and older. Age 25 and older. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 53 Table II-2 Internet Use Individuals Age 3-8 Years Dec. 1998 Aug. 2000 Internet Use Percentage Point Growth In Difference Use Rate Internet Users Total Internet Users Total Dec. 1998 Aug. 2000 Total 2,680 24,282 3,671 23,962 11.0 15.3 4.3 39 Male 1,440 12,346 1,833 12,284 11.7 14.9 3.3 28 Female 1,240 11,936 1,838 11,677 10.4 15.7 5.4 52 White Non-Hisp. 2,058 15,089 2,739 14,837 13.6 18.5 4.8 35 Black Non-Hisp 271 3,881 374 3,654 7.0 10.2 3.3 47 Asian/Pacific Islanders 132 937 156 1,086 14.1 14.4 0.2 2 Hispanic 187 4,095 361 4,140 4.6 8.7 4.2 91 Less than $15,000 220 4,229 182 3,344 5.2 5.4 0.2 4 $15,000 - $24,999 223 3,126 275 2,800 7.1 9.8 2.7 38 $25,000 - $34,999 221 2,828 387 3,053 7.8 12.7 4.9 62 $35,000 - $49,999 456 3,781 581 3,409 12.1 17.1 5.0 41 $50,000 - $74,999 627 4,272 799 4,179 14.7 19.1 4.5 30 $75,000 and above 695 3,728 966 4,426 18.7 21.8 3.2 17 Source: U.S. Bureau of the Census, Current Population Survey, December 1998 and August 2000. Notes: The sum of the components may not equal the total due to rounding. National Telecommunications and Information Administration Economics and Statistics Administration Page 54 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Table II-3 Internet Use Individuals Age 9-17 Dec. 1998 Aug. 2000 Internet Use Percentage Point Growth In Internet Difference Use Rate Users Total Internet Users Total Dec. 1998 Aug. 2000 Total 15,396 35,821 19,579 36,673 43.0 53.4 10.4 24 Male 7,886 18,355 9,925 18,771 43.0 52.9 9.9 23 Female 7,510 17,467 9,654 17,903 43.0 53.9 10.9 25 White Non-Hisp. 12,266 23,293 14,902 23,601 52.7 63.1 10.5 20 Black Non-Hisp 1,169 5,581 1,980 5,796 21.0 34.2 13.2 63 Asian/Pacific Islanders 612 1,516 837 1,428 40.4 58.6 18.3 45 Hispanic 1,185 5,006 1,706 5,427 23.7 31.4 7.8 33 Less than $15,000 1,121 5,062 1,244 4,326 22.2 28.8 6.6 30 $15,000 - $24,999 1,155 4,066 1,413 3,890 28.4 36.3 7.9 28 $25,000 - $34,999 1,514 4,408 1,889 4,132 34.3 45.7 11.4 33 $35,000 - $49,999 2,606 5,500 2,898 5,302 47.4 54.7 7.3 15 $50,000 - $74,999 3,553 6,686 4,082 6,370 53.1 64.1 10.9 21 $75,000 and above 4,215 6,176 5,827 7,801 68.2 74.7 6.4 9 Source: U.S. Bureau of the Census, Current Population Survey, December 1998 and August 2000. Notes: The sum of the components may not equal the total due to rounding. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 55 Table II-4 Internet Use Individuals Age 18-25 Dec. 1998 Aug. 2000 Internet Use Percentage Point Growth In Internet Difference Use Rate Users Total Internet Users Total Dec. 1998 Aug. 2000 Total 11,356 25,662 15,039 26,458 44.3 56.8 12.6 28 Male 5,584 12,929 7,138 13,195 43.2 54.1 10.9 25 Female 5,772 12,732 7,901 13,264 45.3 59.6 14.2 31 White Non-Hisp. 8,693 16,772 11,234 17,290 51.8 65.0 13.1 25 Black Non-Hisp 982 3,679 1,575 3,797 26.7 41.5 14.8 55 Asian/Pacific Islanders 582 1,035 820 1,124 56.3 72.9 16.6 30 Hispanic 1,005 3,972 1,316 4,062 25.3 32.4 7.1 28 Less than $15,000 1,672 4,991 1,786 4,261 33.5 41.9 8.4 25 $15,000 - $24,999 1,183 3,401 1,371 3,153 34.8 43.5 8.7 25 $25,000 - $34,999 1,270 3,283 1,757 3,356 38.7 52.4 13.7 35 $35,000 - $49,999 1,656 3,459 2,046 3,449 47.9 59.3 11.5 24 $50,000 - $74,999 2,117 3,829 2,481 3,684 55.3 67.4 12.1 22 $75,000 and above 2,432 3,711 3,842 4,915 65.5 78.2 12.6 19 Source: U.S. Bureau of the Census, Current Population Survey, December 1998 and August 2000. Notes: The sum of the components may not equal the total due to rounding. National Telecommunications and Information Administration Economics and Statistics Administration Page 56 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Table II-5 Internet Use Individuals Age 25-49 In the Labor Force Dec. 1998 Aug. 2000 Internet Use Percentage Point Growth In Internet Difference Use Rate Users Total Internet Users Total Dec. 1998 Aug. 2000 Total 37,808 86,509 50,107 85,850 43.7 58.4 14.7 34 Male 20,084 46,270 25,979 46,194 43.4 56.2 12.8 30 Female 17,725 40,239 24,129 39,656 44.0 60.8 16.8 38 White Non-Hisp. 31,133 62,563 40,342 61,269 49.8 65.8 16.1 32 Black Non-Hisp 2,922 10,455 4,221 10,471 27.9 40.3 12.4 44 Asian/Pacific Islanders 1,492 3,335 2,339 3,692 44.7 63.3 18.6 42 Hispanic 1,994 9,464 2,920 9,808 21.1 29.8 8.7 41 Employed 37,077 83,508 48,841 82,939 44.4 58.9 14.5 33 Not Employed 731 3,002 1,267 2,911 24.4 43.5 19.2 79 Not in the Labor Force n/a n/a n/a n/a n/a n/a n/a n/a Less than $15,000 1,248 7,307 1,458 5,778 17.1 25.2 8.1 48 $15,000 - $24,999 2,060 8,780 2,461 7,425 23.5 33.1 9.7 41 $25,000 - $34,999 3,632 10,805 4,666 10,096 33.6 46.2 12.6 38 $35,000 - $49,999 6,398 15,333 7,546 13,227 41.7 57.0 15.3 37 $50,000 - $74,999 10,051 18,365 12,140 17,765 54.7 68.3 13.6 25 $75,000 and above 11,298 16,381 16,401 20,201 69.0 81.2 12.2 18 Elementary 702 8,646 1,327 8,502 8.1 15.6 7.5 92 Not a High School Graduate 7,273 27,511 11,058 26,601 26.4 41.6 15.1 57 High School Graduate 11,621 24,663 15,804 24,730 47.1 63.9 16.8 36 Some College 12,187 17,946 14,854 18,097 67.9 82.1 14.2 21 Bachelor's Degree or More 6,026 7,744 7,064 7,920 77.8 89.2 11.4 15 Source: U.S. Bureau of the Census, Current Population Survey, December 1998 and August 2000. Notes: The sum of the components may not equal the total due to rounding. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 57 Table II-6 Internet Use Individuals Age 25-49 Not in the Labor Force Dec. 1998 Aug. 2000 Internet Use Percentage Point Growth In Internet Difference Use Rate Users Total Internet Users Total Dec. 1998 Aug. 2000 Total 3,886 15,327 6,326 16,097 25.4 39.3 13.9 55 Male 805 3,784 1,099 3,840 21.3 28.6 7.3 35 Female 3,081 11,542 5,227 12,257 26.7 42.6 16.0 60 White Non-Hisp. 3,161 9,842 5,054 10,339 32.1 48.9 16.8 52 Black Non-Hisp 197 2,085 438 2,321 9.4 18.9 9.4 100 Asian/Pacific Islanders 292 882 394 859 33.1 45.9 12.8 39 Hispanic 205 2,308 398 2,416 8.9 16.5 7.6 85 Less than $15,000 450 3,774 619 3,397 11.9 18.2 6.3 53 $15,000 - $24,999 338 1,839 415 1,794 18.4 23.1 4.8 26 $25,000 - $34,999 381 1,674 599 1,814 22.8 33.0 10.3 45 $35,000 - $49,999 563 1,950 905 1,923 28.9 47.1 18.2 63 $50,000 - $74,999 742 1,779 1,187 1,978 41.7 60.0 18.3 44 $75,000 and above 1,043 1,959 1,771 2,482 53.3 71.4 18.1 34 Elementary 139 3,493 314 3,436 4.0 9.1 5.2 129 Not a High School Graduate 919 5,407 1,544 5,380 17.0 28.7 11.7 69 High School Graduate 1,327 3,542 2,134 4,053 37.5 52.7 15.2 41 Some College 1,158 2,294 1,698 2,385 50.5 71.2 20.7 41 Bachelor's Degree or More 343 591 636 843 58.1 75.5 17.4 30 Source: U.S. Bureau of the Census, Current Population Survey, December 1998 and August 2000. Notes: The sum of the components may not equal the total due to rounding. National Telecommunications and Information Administration Economics and Statistics Administration Page 58 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Table II-7 Internet Use Individuals Age 50+ In the Labor Force Dec. 1998 Aug. 2000 Internet Use Percentage Point Growth In Internet Difference Use Rate Users Total Internet Users Total Dec. 1998 Aug. 2000 Total 10,268 30,618 14,891 32,103 33.5 46.4 12.9 38 Male 5,838 16,546 8,104 17,605 35.3 46.0 10.7 30 Female 4,430 14,072 6,788 14,498 31.5 46.8 15.3 49 White Non-Hisp. 9,134 24,762 13,189 25,810 36.9 51.1 14.2 39 Black Non-Hisp 517 2,684 779 2,797 19.3 27.9 8.6 44 Asian/Pacific Islanders 300 1,028 402 1,036 29.2 38.8 9.6 33 Hispanic 280 1,985 464 2,299 14.1 20.2 6.1 43 Employed 10,075 29,849 14,558 31,278 33.8 46.5 12.8 38 Not Employed 193 769 333 825 25.1 40.4 15.3 61 Less than $15,000 234 2,354 334 2,021 9.9 16.5 6.6 66 $15,000 - $24,999 353 2,809 529 2,555 12.6 20.7 8.1 65 $25,000 - $34,999 595 3,282 1,033 3,475 18.1 29.7 11.6 64 $35,000 - $49,999 1,345 4,690 1,662 4,300 28.7 38.6 10.0 35 $50,000 - $74,999 2,255 5,737 3,200 5,883 39.3 54.4 15.1 38 $75,000 and above 4,449 7,531 6,193 8,618 59.1 71.9 12.8 22 Elementary 213 3,932 419 4,003 5.4 10.5 5.1 93 Not a High School Graduate 1,930 10,059 2,897 9,886 19.2 29.3 10.1 53 High School Graduate 2,616 7,367 4,350 8,315 35.5 52.3 16.8 47 Some College 2,803 5,013 3,873 5,583 55.9 69.4 13.5 24 Bachelor's Degree or More 2,706 4,247 3,352 4,316 63.7 77.7 13.9 22 Source: U.S. Bureau of the Census, Current Population Survey, December 1998 and August 2000. Notes: The sum of the components may not equal the total due to rounding. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 59 Table II-8 Internet Use Individuals Age 50 + Not in the Labor Force Dec. 1998 Aug. 2000 Internet Use Percentage Point Growth In Difference Use Rate Internet Total Internet Total Dec. 1998 Aug. 2000 Total 3,401 40,234 6,866 41,477 8.5 16.6 8.1 96 Male 1,518 15,702 2,885 15,956 9.7 18.1 8.4 87 Female 1,883 24,532 3,981 25,521 7.7 15.6 7.9 103 White Non-Hisp. 3,208 32,658 6,254 33,293 9.8 18.8 9.0 91 Black Non-Hisp 56 3,759 257 4,015 1.5 6.4 4.9 329 Asian/Pacific Islanders 70 955 148 1,099 7.3 13.5 6.1 84 Hispanic 41 2,622 159 2,765 1.6 5.8 4.2 267 Less than $15,000 226 10,147 434 8,968 2.2 4.8 2.6 118 $15,000 - $24,999 322 6,559 600 6,110 4.9 9.8 4.9 100 $25,000 - $34,999 462 5,556 724 5,075 8.3 14.3 5.9 71 $35,000 - $49,999 556 4,313 1,052 4,259 12.9 24.7 11.8 91 $50,000 - $74,999 610 3,109 1,169 3,591 19.6 32.6 12.9 66 $75,000 and above 779 2,736 1,563 3,745 28.5 41.7 13.3 47 Elementary 174 12,968 421 12,314 1.3 3.4 2.1 155 Not a High School Graduate 840 14,126 1,926 15,022 5.9 12.8 6.9 116 High School Graduate 1,038 7,466 1,913 7,530 13.9 25.4 11.5 83 Some College 789 3,737 1,554 4,264 21.1 36.4 15.3 73 Bachelor's Degree or More 560 1,937 1,052 2,347 28.9 44.8 15.9 55 Source: U.S. Bureau of the Census, Current Population Survey, December 1998 and August 2000. Notes: The sum of the components may not equal the total due to rounding. National Telecommunications and Information Administration Economics and Statistics Administration Page 60 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Table II-9 Reconciliation of Household Access and Person Internet Use Rates for 2000 Asian American White Black & Pac.Islander Hispanic Total 1 Percent of households w/ 46.1 23.5 56.8 23.6 41.5 Internet Average household size: 2 Households w/ Internet 2.74 2.92 3.16 3.42 2.81 3 All households 2.37 2.55 3.07 3.23 2.49 4 Ratio (Row 2 / Row 3) 1.16 1.15 1.03 1.06 1.13 5 Access rate for persons who 53.3 26.9 58.6 25.0 46.7 live in a household w/ Internet access (Row 1 x Row 4) 6 Percent of persons living in a 78.2 70.4 71.4 64.4 76.4 household w/ Internet who use it 7 Use rate for persons who have 41.7 18.9 41.8 16.1 35.7 Internet at home (Row 5 x Row 6) 8 Percent of persons who use 8.6 10.4 7.5 7.6 8.6 Internet only outside the home 9 Access rate for persons who 50.3 29.3 49.3 23.7 44.4 use Internet from any location (Row 7 + Row 8) Note: Group quarters for households and persons are excluded. Numbers may not add exactly because of rounding. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 61 Part III INTERNET ACCESS AND COMPUTER USE AMONG PEOPLE WITH DISABILITIES One important group whose levels of Internet access and computer use have not been discussed previously in this report are those individuals who have a physical or mental disability. The periodic supplements to the Current Population Survey, on which the analysis in the preceding sections are based, offer only a very limited basis from which to consider this issue. Fortunately, a new research data file derived from a different survey, the Survey on Income and Program Participation (SIPP), conducted in late 1999 provides, for the first time, a detailed look at this subject (see Box III-1). As the data presented below show, Internet access and computer use vary by disability status. People who have a disability were only half as likely to live in homes with Internet access than those without any disability. And while just under 25% of people without a disability have never used a personal computer, the situation is quite different for those who have a disability. Close to 60% of people who have at least one type of disability have never used a computer. There are, however, differences in rates of access and use for specific disabilities. For example, people with learning disabilities have Internet access either from home or somewhere else at rates of over 40%, while people who are blind or vision impaired have Internet access rates closer to 20%. The data also show that some of the variation apparent in the aggregate is the result of some fairly large differences in the economic and demographic distribution of the various populations with and without disabilities. When these factors are taken into account, some of the differences between those who have a disability and those who do not narrow considerably. For example, employed people with and without disabilities are substantially more similar to each other in rates of Internet access and computer use than those in the same age group and disability status who are not employed. Even after attempting to account for some of these factors, however, differences remain in the rates of Internet access and computer use between people who have a disability and those who do not.17 Technology offers enormous potential to increase the rates of computer and Internet use among people with disabilities. But technology can also be an additional barrier if products are not designed to be accessible. Innovations in the private sector as well as support from public entities are helping to ensure that more people have access to the Information Age by developing hardware and designing Web sites that are accessible to and usable by everyone. 17 As with the discussion in Part I and II, the present analysis simply presents cross-tabulations of survey data. No attempt has been made here to discern causality or even disentangle the complex interactions that exist, for example, between disability status, income, and employment. National Telecommunications and Information Administration Economics and Statistics Administration Page 62 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Box III-1 The Survey on Income and Program Participation An advantage of the Survey on Income and Program Participation (SIPP) research data file is that it allows examination of Internet access and computer use rates by people with specific types of disabilities. This is an important advantage because the type of disability may have implications for whether and how a person uses computer and accesses the Internet. The Current Population Survey (CPS) contains only one question with respect to disability: CPS respondents are asked if they have a health problem or disability which prevents them from working or limits the amount or type of work they can perform. Using the December 1998 CPS supplement, a recent study compares computer and Internet use between the group that has a work disability with the rest of the population.* The CPS and SIPP have different purposes and very different survey designs (see Methodology Section). The SIPP battery of questions is considerably longer than the CPS and its lengthy interview process allows for the collection of very detailed data such as that on a wide variety of disabilities used in this part of the report. These SIPP data are, however, from a research data file and are therefore considered preliminary and subject to revision. For more information on the SIPP see http://www.sipp.census.gov/sipp/ * See H. Stephen Kaye, "Computer and Internet Use Among People with Disabilities," Disability Statistics Report (13), U.S. Department of Education, National Institute on Disability and Rehabilitation Research, 2000. DEFINITIONS Analyzing the rates of usage of computers and the Internet among people with disabilities is complicated by the existence of different ways of defining disability. Moreover, disability identification is based on self-reporting, so people with similar conditions can disagree about whether that condition constitutes a disability, and whether they want to identify as a person with a disability. The approach used by this report is to follow a concept similar to that set out in the Americans with Disabilities Act (ADA). While the Act does not specify all the possible conditions to which ADA protection applies, it does define a person with a disability to be one who has a physical or mental impairment that substantially limits one or more major life activities.18 Because information on many types of disabilities are collected in the SIPP, it is possible to construct a group that approximates the class protected under the ADA. The group designated as the group with disabilities for the purposes of this study is defined in Box III-2.19 18 This Act, which celebrated its tenth anniversary on July 26, 2000, prohibits discrimination on the basis of disability in employment, State and local government, public accommodations, commercial facilities, transportation, and telecommunications. The Act also includes in its definition any individual with a disability, people with a history or record of such an impairment and people who are perceived by others as having such an impairment. 19 This concept of disability was developed by John McNeil, Bureau of the Census, U.S. Department of Commerce. For additional information on developing an appropriate definition of disability in the context of the SIPP survey see John National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 63 It is obvious that any categorization of those with disabilities, including the one detailed here, will encompass a very diverse group of individuals who will differ from each other in almost as many ways as they differ from those outside the group. Even given this extreme heterogeneity, it may be useful to explore how the class protected by the ADA varies from the rest of the population in its members' use of technologies such as computers and the Internet. This aggregate, however, masks the possible differences that may exist among people with different types of disabilities. Therefore, in order to explore the rates at which individuals with different types of disabilities have access to the Internet and use computers, this section also considers populations with five specific disabilities: difficulty walking (i.e., uses a cane, crutches, or wheelchair), vision problems, hearing problems, difficulty using hands, and learning disabilities. The SIPP questions relating to Internet and computer use were asked of persons age 16 and above. Between August and November 1999, when the disability and Internet and computer use questions were asked, the U.S. population for those 16 and over was estimated to be approximately 209 million with 45 million, or 21.8% having at least one of the disabilities in Box III-2. Although the proportion of persons with any specific disabilities is not large on a proportional basis, even the smallest group­those with a learning disability­has close to 3 million people (Table III-1).20 Table III-1 Disability Status of Persons 16 and Above Number in Thousands Percent of Population Total Population 16 and over 208,783 Has any Disability 45,416 21.8% Has Difficulty with Walking 9,209 4.4% Has Vision Problems 7,310 3.5% Has Hearing Problems 6,961 3.3% Has Difficulty using Hands 6,272 3.0% Has a Learning Disability 2,945 1.4% Source: Survey on Income and Program Participation, research data file (August -November 1999, Wave 11), U.S. Census Bureau, U.S. Department of Commerce. Respondents to the SIPP survey were asked whether they currently had Internet access from home and, if they did not have access from home, they were asked if they had access to the Internet "from work or somewhere else." Respondents were not asked whether they actually used the Internet. M. McNeil, "Employment, Earnings, and Disability," presented at 75th Annual Conference of the Western Economic Association International meetings, June 29-July 3, 2000. (www.census.gov/hhes/www/disability.html). 20 An individual may have more than one type of disability. National Telecommunications and Information Administration Economics and Statistics Administration Page 64 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Box III-2 Building a Disability Category There are many types of disabilities including: * Trouble walking, which includes those who use a cane, crutches, walker, wheelchair, electric scooter, or similar aid for getting around * Vision difficulties, which includes those who have difficulty seeing the words and letters in ordinary newspaper print even when wearing glasses or contact lenses if they usually wear them, in addition to the blind * Hearing difficulties, which includes those who have difficulty hearing what is said in a normal conversation with another person even when wearing hearing aid, in addition to the deaf * Difficulties using hands and fingers to do things such as picking up a glass or grasping a pencil * Learning disabilities, such as dyslexia These five disabilities, however, are not nearly inclusive enough to approach the ADA concept of any "physical or mental impairment that substantially limits one or more major life activities." Therefore, in order to view the community of those with disabilities broadly, a category consisting of people with any of the above disabilities, plus any of the following disabilities was constructed: * Has difficulty having their speech understood * Has difficulty lifting and carrying something as heavy as 10 pounds­such as a bag of groceries * Has difficulty walking up a flight of 10 stairs or walking a quarter of a mile * Has difficulty using an ordinary telephone * Because of a physical or mental health condition, has trouble doing any of the following by themselves: Getting around INSIDE the home Going OUTSIDE the home, for example, to shop or visit a doctor's office Getting in and out of bed or a chair Taking a bath or shower Dressing Eating Using or getting to the toilet Keeping track of money or bills Preparing meals Doing light housework such as washing dishes or sweeping a floor Taking the right amount of prescribed medicine at the right time * Is mentally retarded * Has a developmental disability such as autism or cerebral palsy * Has Alzheimer's disease or any other serious problem with confusion or forgetfulness * Has some other mental or emotional condition * During the past 12 months, reported that problems with people skills, concentration, or stress seriously interfered with their ability to manage everyday activities * Has a long-lasting physical or mental condition that has made it difficult to remain employed, to find a job, or to do work around the house National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 65 Therefore, persons with a disability could answer "yes" to Internet access at home, even if they themselves never used it. As was noted in Part II, a quarter of people in homes with Internet access do not actually use that access. This survey's results, therefore, most likely overstate the rate of Internet use by those with and without disabilities. The degree of overstatement may also be larger for those with disabilities and vary for particular types of disabilities. As shown in Figure III-1, persons with a disability were only half as likely to have Internet access either from home or some other location than those without any disability. There were, however, differences in rates of access for specific disabilities. Those with a learning disability, for example, are more like the population with no disability than are those with a vision problems in having access to the Internet.21 Figure III-1 Internet Access by Disability Status, 1999 With No Disability 42.1 14.6 43.3 With A Disability 21.6 6.8 71.6 Learning Disability 31.2 11.0 57.8 Difficulty Using 17.5 5.0 77.5 Hands Hearing Problems 21.3 5.9 72.8 Vision Problems 16.3 4.8 78.9 Walking Problems 15.0 3.6 81.5 0 10 20 30 40 50 60 70 80 90 100 Percent Internet Access at Home No Home Internet, but access elsewhere No Internet Access Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. While the SIPP did not question all respondents about computer ownership, respondents were asked about their experience with personal computers. As shown in Figure III-2, one half (51%) of those without a disability use "a personal computer on a regular basis" and an additional quarter of this group responded that they have "used a personal computer, but do[es] not now use one on a regular basis." Only 25% of the group without disabilities has never used a personal computer. The situation is quite different for those who have a disability. Those with learning disabilities are the only group with a disability where at least half of the population has any experience using a personal computer. 21 The SIPP data from which these descriptive statistics are drawn are research data for which the analysis required to construct confidence intervals has not yet been undertaken. Therefore it is not possible to judge with accuracy which differences among groups are "real" in the statistical sense. All results and inferences contained in this section should be consider preliminary pending development of testing criteria. National Telecommunications and Information Administration Economics and Statistics Administration Page 66 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure III-2 Personal Computer Use Experience by Disability Status, 1999 With No Disability 51.0 25.7 23.3 With A Disability 20.9 20.1 59.0 Learning Disability 31.5 27.6 40.9 Difficulty Using Hands 12.8 19.2 68.1 Hearing Problems 18.6 17.1 64.3 Vision Problems 13.5 16.9 69.7 Walking Problems 11.9 13.7 74.3 0 10 20 30 40 50 60 70 80 90 100 Percent Uses a Computer on a Regular Basis Not a Regular User, But Has Used a Computer Before Never Used a Computer Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Among those who said they regularly used a personal computer (51.0% of those with no disability and 20.9% of those with a disability), those with a disability more often noted "at home" to be the place where they used a computer, rather than the "work and home" category most often claimed by the group with no disabilities (see Figure III-3). Figure III-3 Regular Users of PCs by Location and Disability Status, 1999 With No Disability 31.7 44.2 19.3 4.8 With A Disability 46.5 31.7 17.3 4.4 0 10 20 30 40 50 60 70 80 90 100 Percent Home, but Not Work Home and Work Work, But Not Home Other Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 67 EXPLORING POPULATIONS WITH DISABILITIES While some of the results presented above have plausible explanations, others raise more questions than answers. One could hypothesize, for example, that the lower rates of PC use at work by those with a disability reflect lower employment among that group, that software that relies heavily on "mouse" commands makes computer use difficult for those with manual dexterity problems, or that Web pages that are covered with graphics make it difficult for people with vision problems to navigate a site. Why, then, do those who use crutches, canes, or wheelchairs have a similarly low proportions of people accessing the Internet or using a PC regularly as those, say, with vision impairment? In order to better understand the use of computers and the Internet by those with disabilities, further examination of the composition of the various groups is necessary. People with a disability (again using the criteria set in Box III-2) are somewhat more likely to be female than the population without disabilities, and there are some relatively minor differences in race and ethnicity distributions between the two groups (see Table III-7). There are striking differences, however, in income, age, and employment distributions: the group with disabilities has lower income, is older, and is less likely to be employed than the group without disabilities (see Figures III-4 to III-9). The previous sections of this report show these three variables to be associated with substantial variations in computer use and Internet access. And, indeed, some interesting variations are found in rates of Internet access and regular computer use between disabled and nondisabled populations when considered over these dimensions, as well as gender and race/ethnicity. National Telecommunications and Information Administration Economics and Statistics Administration Page 68 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure III-5 Figure III-4 Income Distribution for Persons without a Income Distribution for Persons with a Disability Disability $75,000 or more 10.6% $75,000 or more Less than $25,000 25.3% 23.7% $50,000 to $74,999 13.2% Less than $25,000 48.5% $50,000 to $74,999 $25,000 to $49,999 21.4% $25,000 to $49,999 27.7% 29.6% Figure III-7 Figure III-6 Age Distribution for Persons without a Age Distribution for Persons with a Disability Disability 18 to 24 year olds 65 and above 6.5% 9.6% 18 to 24 year olds 19.1% 50 to 64 year olds 65 and above 17.1% 37.4% 25 to 49 year olds 30.6% 25 to 49 year olds 50 to 64 year olds 54.2% 25.5% Figure III-9 Figure III-8 Employment Status Distribution for Employment Status Distribution for Persons without a Disability Persons with a Disability Not Employed Employed 25.7% 32.2% Not Employed 67.8% Employed 74.3% Source: Survey on Income and Program Participation (Aug. -Nov. 1999),.U.S. Census Bureau, U.S. Department of Commerce. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 69 INCOME As shown in Figure III-10, people with a disability are less likely to have access to the Internet than people without a disability at all income levels. This disparity between the two groups declines as income rises. For example, a person with a disability is less than half as likely to have home Internet access if family income is less than $25,000, while there is less than a 20% differential in access rates where family income is in the $75,000 and above range. Similarly, Figure III-11 shows that the difference between the percentage of people with disabilities who regularly use a PC and the percentage of people without a disability who regularly use a PC narrows as incomes rise.22 Figure III-10 Internet Access at Home by Income and Disability Status, 1999 Percent 100 90 80 70 62.0 60 51.3 49.6 50 40 35.0 34.2 30 23.1 23.8 20 10.4 10 0 less than $25,000 $25,000 to $50,000 to $75,000 and $49,999 $74,999 above With a Disability With No Disability Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Figure III-11 Regularly Uses a PC by Income and Disability Status, 1999 Percent 100 90 80 68.3 70 57.9 60 46.7 50 45.4 40 34.0 31.6 30 24.1 20 10.0 10 0 less than $25,000 to $50,000 to $75,000 and $25,000 $49,999 $74,999 above With a Disability With No Disability Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. 22 The companion figures of "No Internet Access at Home, But Elsewhere" and "Never Used a PC" appear in Table III-8. National Telecommunications and Information Administration Economics and Statistics Administration Page 70 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION RACE AND ETHNICITY As regards home Internet access, Hispanics with a disability are the most like their comparative group without a disability, with the access rate of the former being 67% of the latter(see Figure III- 12). When considering differences in the proportion of each group that uses a PC regularly (see Figure III-13), Blacks and Asian Americans and Pacific Islanders have the greatest disparity between persons with and without disabilities on a percentage basis. Figure III-12 Internet Access at Home by Race/Ethnicity and Disability Status, 1999 Percent 100 90 80 70 60 47.7 50 45.9 40 30 24.4 24.7 23.4 21.9 20 14.7 10.1 10 0 White Black Asian Am. and Hispanic With a Disability Pacific Islander With No Disability Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Figure III-13 Regularly Uses a PC by Race/Ethnicity and Disability Status, 1999 Percent 100 90 80 70 60 55.8 51.8 50 38.3 40 = 32.3 30 23.2 20 13.3 16.6 14.0 10 0 White Black Asian Am. and Hispanic Pacific With a Disability Islanders With No Disability Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 71 AGE Individuals in younger age groups are more similar in their degree of home Internet access whether or not they have a disability, but the disparity rises as age increases. Figure III-14 shows that those with a disability in the 16-24 year old age range have Internet access at a rate that is nearly 90% of the rate of those without a disability. The disparity between the two groups increases with age, reaching almost 50% in the 65 and over age group. A similar type of pattern holds when considering the differences that exist between persons with and without disabilities in their experience with personal computers across age groups (see Figure III-15). Figure III-14 Internet Access at Home by Age and Disability Status, 1999 Percent 100 90 80 70 60 46.6 50 41.4 42.5 40 35.9 31.4 30 24.0 17.5 20 9.3 10 0 16-24 years 25-49 years 50-64 years 65 and over With a Disability With No Disability Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Figure III-15 Regularly Uses a PC by Age and Disability Status, 1999 Percent 100 90 80 70 57.6 60 55.9 48.1 50 39.5 40 33.3 30 23.3 20 15.1 10 5.7 0 16-24 years 24-49 years 50-64 years 65 and over With a Disability With No Disability Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. National Telecommunications and Information Administration Economics and Statistics Administration Page 72 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION EMPLOYMENT STATUS The following charts (Figures III-16 and III-17) consider disability status by employment status.23 As noted in Figures III-8 and III-9, the majority of individuals with a disability are not employed (67.8%). When we compare home Internet access rates and regular use of PCs between those with disabilities and those without, controlling for employment status, we find employed persons in the two groups are substantially more similar, than are the non-employed groups. For example, employed persons with a disability have home Internet access at a rate that is 78.3% of that for the group with no disabilities, while among the non-employed, the access rate of people with disabilities is only 46.6% of that of the group with no disabilities. Figure III-16 Internet Access at Home by Employment and Disability Status, 1999 Percent 100 90 80 70 60 50 45.6 40 35.7 32.0 30 20 14.9 10 0 Not Employed Employed With a Disability With No Disability Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Figure III-17 Regularly Uses a PC by Employment and Disability Status, 1999 Percent 100 90 80 70 56.5 60 50 41.9 40 35.0 30 20 10.8 10 0 Not Employed Employed With a Disability With No Disability Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. 23 Note that this section (unlike Part II) groups those who are both unemployed and seeking work with those not in the labor force instead of considering the employed and the unemployed. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 73 GENDER As shown in Figure III-18, males with or without disabilities are more likely than females in the comparable populations to have Internet access at home. Further the difference between the group with disabilities and the group without disabilities is larger for women, than for men (48% to 55%, respectively). This variation is even more pronounced in the comparison of the proportion of persons who regularly use a PC: even though a slightly higher proportion of women without a disability regularly use a PC, women with a disability lag men with a disability in this category (see Figure III-19). Figure III-18 Internet Access at Home by Gender and Disability Status, 1999 Percent 100 90 80 70 60 50 43.3 41.0 40 30 23.9 19.7 20 10 0 Male Female With a Disability With No Disability Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Figure III-19 Regularly Uses a PC by Gender and Disability Status, 1999 Percent 100 90 80 70 60 50.3 51.6 50 40 30 22.5 19.6 20 10 0 Male Female With a Disability With No Disability Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. National Telecommunications and Information Administration Economics and Statistics Administration Page 74 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Table III-2 Population Distribution by Age and Disability 16-24 25-49 50-64 65 and older No Has A No Has A No Has A No Has A Disability Disability Disability Disability Disability Disability Disability Disability Population 31,282 2,960 88,557 13,885 27,932 11,604 15,596 16,966 (in thousands) Population 91.4 8.6 86.4 13.6 70.6 29.4 47.9 52.1 Distribution Male 50.0 52.9 49.5 47.6 49.6 44.4 46.7 38.5 Female 50.0 47.1 50.5 52.4 50.4 55.6 53.3 61.5 White Non-Hisp. 64.9 66.4 71.9 68.8 81.3 73.9 86.4 80.8 Black Non-Hisp 14.0 18.2 11.7 16.3 8.0 13.5 6.5 9.6 Asian Am. and 4.3 1.4 3.9 2.5 3.0 2.5 2.2 2.5 Pacific Islanders Hispanic 15.7 10.9 11.7 10.7 7.1 8.8 4.6 6.1 Employed 59.6 43.2 86.9 54.9 80.3 38.4 21.5 7.5 Not Employed 40.4 56.8 13.1 45.1 19.7 61.6 78.5 92.5 Less than $25,000 27.4 38.5 20.3 42.6 18.7 41.4 44.9 60.1 $25,000 - $49,999 25.5 26.0 31.2 29.1 27.5 29.2 32.6 25.8 $50,000 - $74,999 20.0 15.1 22.9 15.9 22.7 16.6 12.7 8.2 $75,000 and above 27.1 20.4 25.6 12.4 31.1 12.8 9.8 5.9 Not a High School 9.5 21.3 11.3 29.8 24.7 40.6 Graduate High School 30.3 37.0 31.8 33.4 36.5 30.8 Graduate Some College 31.2 28.5 27.7 23.6 21.3 17.9 College Graduate 28.9 13.2 29.2 13.2 17.5 10.7 Source: Survey on Income and Program Participation, research data file (August -November 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Note: Educational attainment not reported for 16-24 year olds in this table because over 50% of this age group are full- time students. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 75 While any of the above socio-economic variables would provide an interesting basis by which to consider specific disabilities in greater detail, age is the variable selected here. As people age, they are increasingly likely to develop a disability. Fewer than 9% of people between the ages of 16 and 24 have a disability, but more than half of those 65 and older have at least one type of disability. (Table III-7 and III-9). And as shown in Table III-2, although differences remain between those groups with and without disabilities in each of the four age groups considered here across variables such as gender, race/ethnicity, employment status, and income, these differences are less than the differences shown in Table III-7. ACCESS, USE, AND DISABILITY: 16-24 YEAR OLDS This youngest of the age groups for which SIPP computer use and Internet access data are available has the highest rates of Internet and computer use, and members of this age group are least likely to have a disability. Of the population with a disability, just under 3 million fall into the 16-24 year old range, limiting the amount of disaggregation that can be presented for this age group. Of the specific disabilities considered in this report, only learning disabilities had a sample size sufficient to produce reliable results. Those with learning disabilities make up 2.8% of the population in this age group, while the other disabilities of difficulty walking, seeing, hearing, and using one's hands each make up less than 1% of this population group. Although 16-24 year olds with disabilities have lower rates of Internet access and are less likely to have used a PC, the differences between people who have a disability and people who do not are much smaller than for the entire 16 and over population (Figures III-20 and III-21). Table III-3 shows how Internet access and PC use varies across several sets of characteristics. Of special note is the fact that Internet access is the same for people who have a disability and are employed, as for people who do not have a disability and are employed. A separate breakout of educational attainment is not included for this age group because over half of the people in this age category are full-time students. National Telecommunications and Information Administration Economics and Statistics Administration Page 76 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure III-20 Internet Access Among 16-24 Year Olds by Disability Status, 1999 With No Disability 41.4 20.6 38.0 With A Disability 35.9 17.1 47.1 Learning Disability 36.9 17.3 45.8 0 10 20 30 40 50 60 70 80 90 100 Percent Internet Access at Home No Home Internet, but access elsewhere No Internet Access Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Figure III-21 Personal Computer Use Experience Among 16-24 Year Olds by Disability Status, 1999 With No Disability 57.6 33.0 9.4 With A Disability 39.5 38.9 21.6 Learning Disability 35.8 41.1 23.1 0 10 20 30 40 50 60 70 80 90 100 Percent Uses a Computer on a Regular Basis Not a Regular User, But Has Used a Computer Before Never Used a Computer Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 77 Table III-3 Internet Access and Computer Use by 16-24 Year Olds (Population: 34,242,000) Home Internet Internet Access, Regular PC User Never Used a PC Access But Not At Home No Has a No Has a No Has a No Has a Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- Disability Disability ity ity ity ity ity ity All 16-24 Year 41.4 35.9 20.6 17.1 57.6 39.5 9.4 21.6 Olds Male 41.5 34.8 19.4 15.1 54.8 35.5 10.1 22.6 Female 41.2 37.1 21.9 19.2 60.3 44.0 8.8 20.5 White Non-Hisp. 50.0 44.7 20.1 16.0 64.4 46.5 5.6 16.2 Black Non-Hisp 22.8 23.5 41.1 23.4 16.8 35.8 Asian Am. and 48.3 20.1 69.0 5.4 Pacific Islanders Hispanic 21.6 20.2 41.6 30.8 18.6 31.3 Employed 44.4 43.4 19.8 19.6 59.1 48.8 8.0 10.9 Not Employed 36.9 30.1 21.9 15.1 55.3 32.4 11.5 29.7 Less than $25,000 24.6 25.0 23.4 19.5 42.6 28.6 14.7 27.7 $25,000 - $49,999 35.7 32.8 23.0 17.8 55.1 37.5 10.4 22.3 $50,000 - $74,999 46.3 19.2 63.2 8.1 16.4 $75,000 and above 60.0 57.4 16.6 14.1 70.8 59.2 4.2 13.1 Full-Time Students 49.1 43.0 24.5 19.8 69.1 50.2 4.5 16.6 Source: Survey on Income and Program Participation, research data file (August -November 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Note: Blank cells in the table indicate insufficient sample size to produce reliable estimates. National Telecommunications and Information Administration Economics and Statistics Administration Page 78 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION ACCESS, USE, AND DISABILITY: 25-49 YEAR OLDS Although data presented in Part II indicate that the proportion of individuals using the Internet remains relatively constant over every age in this grouping, there are substantial differences in access when considered across characteristics such as income and educational attainment (see Table III-4). For example, college graduates in the 25-49 year old age group had very similar rates of home Internet access regardless of disability status (67.8% for those with no disability and 65.2% for those with a disability). In addition, there are differences among the people with various disabilities within this group. Those with hearing difficulties had an Internet access rate of 52.7%,roughly half-way between the 61.6% rate for those without a disability and the rates in the low 40s for those with other disabilities. Figure III-22 Internet Access Among 25-49 Year Olds by Disability Status, 1999 With No Disability 46.6 15.0 38.3 With A Disability 31.4 10.5 58.1 Learning Disability 30.5 9.6 59.9 Difficulty Using Hands 32.4 10.5 57.1 Hearing Problems 40.5 12.2 47.4 Vision Problems 30.5 9.8 59.7 Walking Problems 32.3 11.2 56.5 0 10 20 30 40 50 60 70 80 90 100 Internet Access at Home Percent No Home Internet, but access elsewhere Never Used a Computer Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Figure III-23 Personal Computer Use Experience Among 25-49 Year Olds by Disability Status, 1999 With No Disability 55.9 25.2 18.9 With A Disability 33.3 27.1 39.5 Learning Disability 31.3 24.9 43.8 Difficulty Using Hands 27.1 33.9 38.9 Hearing Problems 39.3 27.4 33.3 Vision Problems 30.4 28.8 40.8 Walking Problems 34.3 24.0 41.7 0 10 20 30 40 50 60 70 80 90 100 Percent Uses a Computer on a Regular Basis Not a Regular User, But Has Used a Computer Before Never Used a Computer Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 79 This age group has the highest proportion employed of any age group considered here and although the proportion employed on a full-time basis among those with no disabilities (86.9%) exceeds the proportion of those with a disability who are likewise employed (54.9%), there are sufficient numbers in both groups to take a detailed look at variations by disability status. As shown in Figures III-24 and III-25, differences in Internet access and computer use are less when considering only those in each group who were employed on a full-time basis24. Figure III-24 Internet Access Among Employed 25-49 Year Olds by Disability Status, 1999 With No Disability 47.4 16.4 36.2 With A Disability 39.8 16.0 44.3 Learning Disability 42.8 16.0 41.2 Difficulty Using Hands 42.0 17.4 40.6 Hearing Problems 46.3 15.2 38.6 Vision Problems 39.2 15.0 45.8 Walking Problems 42.5 21.7 35.8 0 10 20 30 40 50 60 70 80 90 100 Percent Internet Access at Home No Home Internet, but access elsewhere Never Used a Computer Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Figure III-25 Personal Computer Use Experience Among Employed 25-49 Year Olds by Disability Status, 1999 With No Disability 58.6 24.5 17.0 With A Disability 46.5 27.1 26.4 Learning Disability 46.7 31.1 22.2 Difficulty Using Hands 41.1 36.1 22.8 Hearing Problems 47.7 27.4 25.0 Vision Problems 44.0 24.9 31.1 Walking Problems 53.1 26.9 20.1 0 10 20 30 40 50 60 70 80 90 100 Percent PC Uses a Computer on a Regular Basis PC Not a Regular User, But Has Used a Computer Before PC Never Used a Computer Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. 24 The data in Figures III-24 and III-25 refer to those who were employed on a full-time basis for the reference period of the survey. Data in Table III-4 and elsewhere consider people who had any employment (full or part-time) during the reference period to be employed. National Telecommunications and Information Administration Economics and Statistics Administration Page 80 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Table III-4 Internet Access and Computer Use by 25-49 Year Olds (Population: 102,442,000) Home Internet Internet Access, Regular PC User Never Used a PC Access But Not At Home No Has a No Has a No Has a No Has a Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- ity ity ity ity ity ity ity ity All 25-49 Year 46.6 31.4 15.0 10.5 55.9 33.3 18.9 39.5 Olds Male 47.3 31.6 13.1 8.3 54.4 33.2 21.0 43.3 Female 46.0 31.2 16.9 12.5 57.4 33.5 16.8 36.1 White Non-Hisp. 53.6 37.1 15.6 11.4 62.42 39.0 12.5 32.6 Black Non-Hisp 27.4 14.8 17.4 9.2 41.8 17.8 28.2 58.6 Asian Am. and 49.9 12.2 53.9 32.8 23.2 40.0 Pacific Islanders Hispanic 23.3 18.6 9.8 6.8 31.6 21.1 47.2 54.4 Employed 47.3 39.4 16.3 15.2 58.3 45.7 17.1 26.3 Not Employed 42.4 21.6 6.5 4.8 40.3 18.3 30.6 55.7 Less than $25,000 27.7 16.9 12.4 7.7 36.5 18.0 34.6 52.9 $25,000 - $49,999 39.0 33.6 17.5 12.1 51.2 38.1 21.4 34.8 $50,000 - $74,999 53.3 44.5 14.7 12.9 61.8 45.9 13.2 28.5 $75,000 and above 64.9 59.1 14.4 13.3 71.8 58.3 8.5 19.2 Not a High School 12.2 9.4 3.8 4.0 13.6 8.9 64.0 74.8 Graduate High School 34.1 24.5 12.9 8.4 39.9 24.0 27.2 43.6 Graduate Some College 49.7 41.2 17.0 15.2 60.7 45.5 11.4 22.8 College Graduate 67.8 65.2 18.8 16.9 81.5 72.6 3.3 7.2 Source: Survey on Income and Program Participation, research data file (August -November 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Note: Blank cells in the table indicate insufficient sample size to produce reliable estimates. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 81 ACCESS, USE, AND DISABILITY: 50-64 YEAR OLDS Among the 50 to 64 year old age group, 30% have at least one of the disabilities listed in Box III-2 and the proportion with any one of the five disabilities considered, with the exception of learning disabilities, is also substantially higher than in the 25-49 year old group. This is an age group that has wide variations in Internet access and computer use within the group of people who have disabilities. For example, 70.9% of those who have a disability and have family income of less than $25,000 have never used a PC. That proportion falls to 29.7% in the $75,000 and above income group. Figure III-26 Internet Access Among 50-64 Year Olds by Disability Status, 1999 With No Disability 42.5 12.6 44.9 With A Disability 24.0 7.2 68.8 Difficulty Using 22.5 6.5 71.0 Hands Hearing Problems 28.4 11.0 60.6 Vision Problems 21.0 6.6 72.4 Walking Problems 25.1 5.0 69.8 0 10 20 30 40 50 60 70 80 90 100 Percent Internet Access at Home No Home Internet, but access elsewhere No Internet Access Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Figure III-27 Personal Computer Use Experience Among 50-64 Year Olds by Disability Status, 1999 With No Disability 48.1 23.0 28.9 With A Disability 23.3 21.2 55.5 Difficulty Using Hands 18.4 21.5 60.1 Hearing Problems 26.7 23.0 50.3 Vision Problems 17.7 22.1 60.2 Walking Problems 22.7 20.6 56.7 0 10 20 30 40 50 60 70 80 90 100 Uses a Computer on a Regular Basis Percent Not a Regular User, But Has Used a Computer Before Never Used a Computer Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. National Telecommunications and Information Administration Economics and Statistics Administration Page 82 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Table III-5 Internet Access and Computer Use by 50-64 Year Olds (Population: 39,536,000) Home Internet Internet Access, Regular PC User Never Used a PC Access But Not At Home No Has a No Has a No Has a No Has a Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- ity ity ity ity ity ity ity ity All 50-64 Year 42.5 24.0 12.6 7.2 48.1 23.3 28.9 55.5 Olds Male 45.1 25.2 11.2 7.6 48.7 23.5 30.2 56.4 Female 39.9 23.0 13.9 6.8 47.5 23.1 27.7 54.8 White Non-Hisp. 46.6 28.2 13.2 7.8 52.8 26.8 23.8 50.4 Black Non-Hisp 23.8 10.0 11.5 7.1 31.0 14.9 45.8 66.9 Asian Am. and 34.2 10.4 31.8 46.8 Pacific Islanders Hispanic 20.6 7.2 21.3 10.2 61.4 77.3 Employed 44.2 32.8 14.8 14.3 52.6 39.9 25.6 36.8 Not Employed 35.5 18.5 3.8 2.7 29.6 12.9 42.7 67.2 Less than $25,000 23.6 12.2 10.5 4.2 28.1 10.9 47.3 70.9 $25,000 - $49,999 31.2 23.9 12.6 8.3 40.7 24.8 34.6 52.6 $50,000 - $74,999 46.5 30.5 12.9 10.7 51.5 33.8 25.2 42.3 $75,000 and above 60.8 54.2 13.6 9.6 64.1 46.3 15.6 29.7 Not a High School 13.6 7.4 4.0 1.8 11.4 5.8 73.6 83.5 Graduate High School 30.6 17.6 11.9 7.1 34.0 17.3 39.8 59.4 Graduate Some College 45.7 39.4 13.7 10.7 52.1 38.6 19.4 33.6 College Graduate 63.6 50.2 15.6 13.2 73.8 50.4 8.9 21.7 Source: Survey on Income and Program Participation, research data file (August -November 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Note: Blank cells in the table indicate insufficient sample size to produce reliable estimates. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 83 ACCESS, USE, AND DISABILITY: 65 YEAR OLDS AND OLDER Over one-half (52.1%) of the population in this age group has a disability. Considering it another way, this age group accounts for only 15.6% of the population as a whole, but over one-third (37.4%)of the total number of people with a disability. This age group has very low rates of home Internet access and computer use generally, and the rates for those with a disability are very low. Therefore, even with the large number of those with a disability, low rates of home Internet access make it impossible to distinguish between individual types of disabilities for Figure III-28. Figure III-28 Internet Access Among 65 and Older, by Disability Status, 1999 With No Disability 17.4 3.7 78.9 With A Disability 9.3 1.8 88.8 0 10 20 30 40 50 60 70 80 90 100 Percent Internet Access at Home No Home Internet, but access elsewhere No Internet Access Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Figure III-29 Personal Computer Use Experience Among 65 and Older by Disability Status, 1999 With No Disability 15.1 18.3 66.6 With A Disability 5.7 10.5 83.8 Trouble Grasping 2.8 10.1 87.1 Hearing Problems 6.9 10.1 83.0 Vision Problems 2.9 7.7 89.4 Walking Problems 2.5 8.6 88.9 0 10 20 30 40 50 60 70 80 90 100 Percent Uses a Computer on a Regular Basis Not a Regular User, But Has Used a Computer Before Never Used a Computer Source: Survey on Income and Program Paritipation, research data file (Aug-Nov 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. National Telecommunications and Information Administration Economics and Statistics Administration Page 84 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Table III-6 Internet Access and Computer Use by 65 Year Olds and Older (Population: 4,221,000) Home Internet Internet Access, Regular PC User Never Used a PC Access But Not At Home No Has a No Has a No Has a No Has a Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- ity ity ity ity ity ity ity ity All 65 and Older 17.4 9.3 3.7 1.8 15.1 5.7 66.6 83.8 Male 20.2 12.5 3.9 1.9 19.7 7.6 63.0 79.8 Female 15.0 7.4 3.5 1.8 11.0 4.5 69.8 86.3 White Non-Hisp. 18.6 10.4 3.7 2.0 16.2 6.6 64.7 81.6 Black Non-Hisp Asian Am. and Pacific Islanders Hispanic Employed 24.6 9.8 28.4 19.2 52.1 64.2 Not Employed 15.5 8.8 2.0 1.6 11.4 4.6 70.6 85.4 Less than $25,000 9.1 4.1 2.8 1.1 7.9 2.9 78.9 89.6 $25,000 - $49,999 18.0 13.0 3.1 2.6 18.2 8.2 59.5 78.1 $50,000 - $74,999 31.3 5.5 22.7 12.3 52.8 69.0 $75,000 and above 36.1 7.3 27.3 13.8 51.9 70.8 Not a High School 5.3 1.6 3.5 1.7 87.6 94.4 Graduate High School 12.5 9.0 3.0 1.6 10.2 4.5 72.1 84.1 Graduate Some College 23.8 13.4 5.2 3.1 20.2 8.9 56.3 73.7 College Graduate 37.1 23.8 6.3 4.9 35.4 19.4 38.1 59.8 Source: Survey on Income and Program Participation, research data file (August -November 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Note: Blank cells in the table indicate insufficient sample size to produce reliable estimates. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 85 Table III-7 Individuals 16 and over (Numbers in Thousands) Total Population Persons without a Persons with a Disability Disability Number Percent Number Percent Number Percent TOTAL 208,783 163,367 78.2 45,416 21.8 GENDER Male 100,449 48.1 80,580 49.3 19,869 43.7 Female 108,334 51.9 82,787 50.7 25,547 56.3 AGE 16 to 24 34,241 16.4 31,282 19.1 2,960 6.5 25 to 49 102,442 49.1 88,557 54.2 13,885 30.6 50 to 64 39,536 18.9 27,932 17.1 11,604 25.5 65 + 32,563 15.6 15,596 9.6 16,996 37.4 FAMILY INCOME Less than $25,000 60,767 29.1 38,723 23.7 22,045 48.5 $25,000 to $49,999 60,976 29.2 48,405 29.6 12,571 27.7 $50,000 to $74,999 40,868 19.6 34,892 21.4 5,976 13.2 $75,000 or more 46,170 22.1 41,347 25.3 4,824 10.6 EMPLOYMENT STATUS Employed 136,030 65.2 121,398 74.3 14,632 32.2 Not Employed 72,753 34.8 41,969 25.7 30,784 67.8 RACE/ETHNICITY White, Non-Hispanic 154,011 73.8 120,203 73.6 33,808 74.4 Black, Non-Hispanic 24,004 11.5 18,000 11.0 6,004 13.2 Asian Am.. and 7,089 3.4 5,984 3.7 1,105 2.4 Pacific Islander Hispanic 21,836 10.5 17,965 11.0 3,871 8.5 Source: Survey on Income and Program Participation, research data file (August -November 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. National Telecommunications and Information Administration Economics and Statistics Administration Page 86 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Table III-8 Internet Access and Computer Use (208,784,000) Home Internet Internet Access, Regular PC User Never Used a PC Access But Not At Home No Has a No Has a No Has a No Has a Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- Disabil- ity ity ity ity ity ity ity ity All Persons 16 and 42.1 21.6 14.6 6.8 51.0 20.8 23.3 59.0 Above Male 43.3 23.9 13.2 6.6 50.3 22.5 24.2 57.1 Female 41.0 19.7 16.0 7.1 51.6 19.6 22.5 60.5 16-24 year olds 41.4 35.9 20.6 17.0 57.6 39.5 9.4 21.6 25-49 year olds 46.6 31.4 15.0 10.5 55.9 33.3 18.9 39.5 50-64 year olds 42.5 24.0 12.6 7.2 47.1 23.3 28.9 55.5 65 and older 17.5 9.3 3.7 1.8 15.1 5.7 66.6 83.8 White Non-Hisp. 47.7 24.4 14.6 7.0 55.8 23.2 19.3 56.0 Black Non-Hisp 24.7 10.1 17.4 7.8 38.3 13.2 30.5 68.1 Asian Am. and 45.9 23.4 13.4 51.8 16.6 25.2 67.2 Pacific Islander Hispanic 21.9 14.6 12.0 4.8 32.2 13.9 42.3 69.1 Less than $25,000 23.1 10.4 12.8 4.5 31.6 10.0 39.9 72.5 $25,000 - $49,999 35.0 23.8 16.1 8.1 46.7 24.1 25.7 53.9 $50,000 - $74,999 49.6 34.2 14.6 10.1 57.9 34.0 16.7 41.5 $75,000 and above 62.0 51.3 14.4 10.3 68.3 45.4 10.7 32.5 Source: Survey on Income and Program Participation, research data file (August -November 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. Note: Blank cells in the table indicate insufficient sample size to produce reliable estimates. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 87 Table III-9 Disability by Age 16-24 25-49 50-64 65 and above (34,241,000) (102,442,000) (39,536,000) (32,563,000) No Disability 91.4 86.4 70.6 47.9 Has a Disability 8.6 13.6 29.4 52.1 Difficulty Walking 0.4 1.4 4.8 17.7 Difficulty Seeing 0.5 1.7 4.1 11.4 Difficulty Hearing 0.7 1.3 3.7 12.0 Difficulty Grasping 0.3 1.5 4.0 9.4 Learning Disability 2.8 1.4 1.1 0.5 Source: Survey on Income and Program Participation, research data file (August -November 1999, Wave 11), U.S. Bureau of the Census, U.S. Department of Commerce. National Telecommunications and Information Administration Economics and Statistics Administration Page 88 FALLING THROUGH THE NET: TOWARD DIGITAL INCLUSION National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 89 CONCLUSION - A LOOK AHEAD More and more Americans have computers and use the Internet. If current trends continue, we expect more than half of all U.S. households will be connected to the Internet by the end of 2000, and more than half of all individuals will be using the Internet by the middle of 2001. We are approaching the point where not having access to these tools is likely to put an individual at a competitive disadvantage and in a position of being a less-than-full participant in the digital economy. Most groups, regardless of income, education, race or ethnicity, location, age, or gender are making dramatic gains. Nevertheless, some large divides still exist and groups are going online at different rates. The detailed information in this report provides a basis against which we can measure change. We have good data on household access as well as on individual access and use. The latter data will become increasingly important as Americans access the Internet not only from their homes, but also from new hand-held and mobile devices. And, for the first time, we now have information on the use of the Internet by people with disabilities, as well as new technologies such as broadband services. These data can help policymakers focus policies and programs to promote inclusion in using computers and the Internet. Our next survey, to be conducted in September 2001, will give us fresh results and a new opportunity to measure progress. The nation is rapidly going online, with an ever higher share of Americans regularly using computers and the Internet in their daily lives. The U.S. Department of Commerce will continue to work vigorously to better measure, understand, and promote the goal of full digital inclusion for all Americans. National Telecommunications and Information Administration Economics and Statistics Administration Page 90 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 91 METHODOLOGY This report is the fourth in the Department of Commerce's Falling Through the Net series, which surveys trends in Americans' access to new technologies.25 As in our previous reports, we utilize data from the Department of Commerce's U.S. Census Bureau. The household data in Part I, and the individual access and usage data in Part II, of this report come from the Census Bureau's August 2000 Current Population Survey (CPS) of approximately 48,000 sample households. For the first time in this series, we also report on access to new technologies by people with disabilities (in Part III), using data from the Census Bureau's Survey of Income and Program Participation (SIPP). CURRENT POPULATION SURVEY In collecting household and individual data for the CPS, the Census Bureau interviewed approximately 48,000 sample households. These households were selected from the 1990 Decennial Census files continually updated to account for new residential construction after 1990. The CPS sample is representative of all fifty states and the District of Columbia. For each household, Census Bureau interviewers spoke to a person (called the "respondent") who was at least 15 years old and was considered knowledgeable about everyone in the household. The respondent provided information for the entire household including the demographics (such as education level, race, and age) of each household member and the income level for the household. The "householder" or "reference person" is an adult in the household who either owns or has signed for the rent on the residence. The respondent provided responses for him or herself and proxy responses for all other members of that household. The survey, therefore, provided information on 121,745 individuals (including children). As in the prior three reports, the Census Bureau cross-tabulated the information gathered from the CPS according to specific variables, such as income, race, education level, household type, and age as well as by geographic categories, such as rural, urban, and central city, plus state and region. The Census Bureau determined that some of the data were statistically insignificant for meaningful analysis because the sample from which they were derived was too small. All statistics are subject to sampling error, as well as non-sampling error such as survey design flaws, respondent classification and reporting errors, data processing mistakes and undercoverage. The Census Bureau has taken steps to minimize errors in the form of quality control and edit procedures to reduce errors made by respondents, coders, and interviewers. 25 The first report, Falling Through the Net: A Survey of the "Have Nots" in Rural and Urban America (July 1995), surveyed household telephone, computer, and modem ownership. Falling Through the Net II: New Data on the Digital Divide (July 1998), presented updated data on household access to telephones, computers, and the Internet. Falling Through the Net: Defining the Digital Divide (July 1999) provided new data on household access to these technologies, and also provided new information on individual Internet access and usage. National Telecommunications and Information Administration Economics and Statistics Administration Page 92 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Ratio estimation to independent age-race-sex-Hispanic population controls partially corrects for bias attributable to survey undercoverage. However, biases exist in the estimates when missed people have characteristics different from those of interviewed people in the same age-race-sex- Hispanic group. SURVEY OF INCOME AND PROGRAM PARTICIPATION Information on people with disabilities was gathered from the SIPP, sponsored and conducted by the Census Bureau. This survey is a continuous series of national panels, with sample size ranging from approximately 11,500 to 36,700 interviewed households. The duration of each panel ranges from 2 ½ years to 4 years. The SIPP sample is a multistage-stratified sample of the U.S. civilian noninstitutionalized population. The 4-year panel containing the disability data was introduced in April 1996. To facilitate field procedures, each sample panel is divided into four random subsamples, each representative of the Nation, called "rotation groups." Each rotation group is interviewed in a separate month. Four rotation groups thus comprise one cycle or wave of interviewing for the entire panel. At each interview, respondents are asked to provide information covering the 4 months since the previous interview. This 4-month span is the "reference period" for the interview. The SIPP content is built around a "core" of labor force, program participation, and income questions designed to measure the economic situation of persons in the United States. These questions expand the data currently available on the distribution of cash and noncash income and are repeated at each interviewing wave. Census Bureau field representatives conduct the interviews by telephone and by personal visit using laptop computers. The survey has been designed also to provide a broader context for analysis by adding questions on a variety of topics not covered in the core section. These questions are labeled "topical modules" and are assigned to particular interviewing waves of the survey. Topics covered by the modules include personal history, child care, wealth, program eligibility, child support, disability, school enrollment, taxes, and annual income. Wave 11 conducted between August and November 1999 contained a topical module on adult disability to which questions of Internet access and computer use were added. This module can be found at http://www.sipp.census.gov/sipp/top_mod/1996/quests/wave11/ adultdis.html. SIPP estimates are subject to errors of two different kinds: sampling error, or errors due to the fact that the results from the SIPP sample may differ from those that might have been obtained if the entire population had been surveyed (i.e., if a census had been taken); and nonsampling errors, or errors due to undercoverage and nonresponse, and errors made during data collection and processing. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 93 APPENDIX National Telecommunications and Information Administration Economics and Statistics Administration Page 94 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A1 Percent of U.S. Households with a Computer and Internet Access 1994, 1997, 1998, 2000 60 Computer Internet access 50 40 30 20 Percent of U.S. Households 10 0 1994 1997 1998 2000 Computer 24.1 36.6 42.1 51.0 Internet access 18.6 26.2 41.5 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. Figure A2 Percent of U.S. Households with a Computer By U.S., Rural, Urban, and Central City Areas 1994, 1997, 1998, 2000 60 1994 1997 1998 50 2000 40 30 20 Percent of U.S. Households 10 0 U.S. Rural Urban Central City 1994 24.1 22.1 24.8 22.0 1997 36.6 34.9 37.2 32.8 1998 42.1 39.9 42.9 38.5 2000 51.0 49.6 51.5 46.3 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 95 Figure A3 Percent of U.S. Households with a Computer By Income, By U.S., Rural, Urban, and Central City Areas 2000 100 U.S. 90 Rural Urban 80 Central City 70 60 50 40 30 Percent of U.S. Households 20 10 0 Under 5,000- 10,000- 15,000- 20,000- 25,000- 35,000- 50,000- $5,000 9,999 14,999 19,999 24,999 34,999 49,999 74,999 75,000+ U.S. 21.8 14.6 22.0 28.4 31.4 44.6 58.6 73.2 86.3 Rural 16.0 13.0 20.7 28.3 29.4 43.3 58.1 72.7 86.8 Urban 23.6 15.1 22.4 28.4 32.1 45.1 58.8 73.4 86.2 Central City 23.7 14.7 22.8 29.0 30.6 44.2 57.1 70.7 83.7 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A4 Percent of U.S. Households with a Computer By Race/Hispanic Origin, By U.S., Rural, Urban, and Central City Areas 2000 80 U.S. Rural 70 Urban Central City 60 50 40 30 Percent of U.S. Households 20 10 0 White Black Asian Amer. & Pac. Isl. Hispanic U.S. 55.7 32.6 65.6 33.7 Rural 51.8 27.5 70.3 28.8 Urban 57.3 33.3 65.3 34.2 Central City 55.5 28.7 61.1 31.1 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration Page 96 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A5 Percent of U.S. Households with a Computer By Income, By Race/ Hispanic Origin 2000 100 White 90 Black Asian Amer. & Pac. Isl. 80 Hispanic 70 60 50 40 Percent of U.S. Households 30 20 10 0 Under $15,000 $15,000-34,999 $35,000-74,999 $75,000+ White 22.8 40.8 68.7 87.0 Black 11.5 27.3 52.7 83.4 Asian Amer. & Pac. Isl. 39.4 53.5 72.4 86.9 Hispanic 12.5 27.8 55.9 76.1 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A6 Percent of U.S. Households with a Computer By Education, By U.S., Rural, Urban, and Central City Areas 2000 90 U.S. Rural 80 Urban 70 Central City 60 50 40 30 Percent of U.S. Households 20 10 0 Elementary Some H.S. H.S. Diploma or GED Some College B.A. or more U.S. 12.8 21.9 39.6 60.3 75.7 Rural 10.5 24.6 42.6 62.9 77.8 Urban 13.7 20.9 38.3 59.5 75.3 Central City 15.8 17.4 33.2 53.7 72.2 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 97 Figure A7 Percent of U.S. Households with a Computer By Household Type, By U.S., Rural, Urban, and Central City Areas 2000 80 U.S. Rural 70 Urban Central City 60 50 40 30 Percent of U.S. Households 20 10 0 Married couple w/ Male household w/ Female household Family households Non-family child <18 child <18 w/ child <18 w/o child households U.S. 73.2 45.6 42.9 52.5 34.6 Rural 73.3 43.3 41.6 48.0 26.2 Urban 73.2 46.3 43.2 54.4 36.5 Central City 65.9 43.1 34.9 48.9 37.9 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A8 Percent of U.S. Households with Internet Access By U.S. Rural, Urban and Central City Areas 1998 and 2000 45 1998 2000 40 35 30 25 20 15 Percent of U.S. Households 10 5 0 U.S. Rural Urban Central City 1998 26.2 22.2 27.5 24.5 2000 41.5 38.9 42.3 37.7 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Bureau of the Census Current Population Survey supplements. National Telecommunications and Information Administration Economics and Statistics Administration Page 98 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A9 Percent of U.S. Households with Internet Access By Income, By U.S., Rural, Urban, and Central City Areas 2000 90 U.S. Rural 80 Urban 70 Central City 60 50 40 30 Percent of U.S. Households 20 10 0 Under 5,000- 10,000- 15,000- 20,000- 25,000- 35,000- 50,000- $5,000 9,999 14,999 19,999 24,999 34,999 49,999 74,999 75,000+ U.S. 16.0 9.3 14.2 19.2 22.9 34.0 46.1 60.9 77.7 Rural 13.1 9.0 12.5 19.1 21.2 31.5 41.8 59.5 76.6 Urban 16.8 9.4 14.8 19.3 23.5 34.9 47.8 61.4 78.0 Central City 17.0 9.5 15.4 19.2 22.0 34.6 46.0 60.1 76.1 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A10 Percent of U.S. Households with Internet Access By Race/Hispanic Origin, By U.S., Rural, Urban, and Central City Areas 2000 70 U.S. Rural 60 Urban Central City 50 40 30 Percent of U.S. Households 20 10 0 White Black Asian Amer. & Pac. Isl. Hispanic U.S. 46.1 23.5 56.8 23.6 Rural 40.9 19.9 62.1 19.9 Urban 48.3 24.0 56.6 23.9 Central City 47.1 20.1 53.0 21.5 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 99 Figure A11 Percent of U.S. Households with Internet Access By Income, By Race/Hispanic Origin 2000 90 White Black 80 Asian Amer. & Pac. Isl. 70 Hispanic 60 50 40 30 Percent of U.S. Households 20 10 0 Under $15,000 15,000-34,999 35,000-74,999 75,000+ White 16.0 31.0 56.7 78.6 Black 6.4 17.9 38.7 70.9 Asian Amer. & Pac. Isl. 33.2 43.8 60.7 81.6 Hispanic 5.2 17.7 41.5 63.7 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A12 Percent of U.S. Households with Internet Access By Education, By U.S., Rural, Urban, and Central City Areas 2000 80 U.S. Rural 70 Urban Central City 60 50 40 30 Percent of U.S. Households 20 10 0 Elementary Some H.S. H.S. Diploma or GED Some College B.A. or more U.S. 7.2 14.8 29.9 49.0 66.0 Rural 6.1 16.5 31.0 50.0 67.7 Urban 7.6 14.2 29.5 48.7 65.7 Central City 8.4 11.9 25.7 43.6 62.3 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration Page 100 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A13 Percent of U.S. Households with Internet Access By Household Type, By U.S., Rural, Urban, and Central City Areas 2000 70 U.S. Rural 60 Urban Central City 50 40 30 Percent of U.S. Households 20 10 0 Married couple w/ Male household w/ Female household Family households Non-family child <18 child <18 w/ child <18 w/o child households U.S. 60.6 35.7 30.0 43.2 28.1 Rural 58.3 30.3 31.2 37.7 20.2 Urban 61.5 37.4 29.7 45.5 29.9 Central City 55.1 35.3 22.8 41.0 30.8 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A14 Percent of U.S. Households with Internet Access By Age, By U.S., Rural, Urban, and Central City Areas 2000 60 U.S. Rural 50 Urban Central City 40 30 20 Percent of U.S. Households 10 0 Under 25 years 24-34 years 34-44 years 45-54 years 55+ years U.S. 35.7 47.5 52.3 51.9 26.0 Rural 29.8 42.5 50.9 49.6 24.6 Urban 36.9 48.7 52.7 52.7 26.5 Central City 35.5 46.4 46.2 45.4 22.2 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 101 Figure A15 Percent of U.S. Households with High-Speed Internet Access, 2000 100 Dial up 90 High-speed 80 70 60 50 40 Percent of U.S. Households 30 20 10 0 Internet Households All Households Dial up 89.3 37.0 High-speed 10.7 4.4 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A16 Percent of U.S. Households with High-Speed Internet Access By Technology and Age, 2000 60 DSL Cable modem 50 40 30 20 10 Percent of U.S. Households w/ High-Speed Internet Access 0 Under 25 24-34 35-44 45-54 55+ DSL 50.1 32.4 31.8 32.7 34.6 Cable modem 42.7 50.8 52.7 53.6 46.2 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration Page 102 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A17 Percent of U.S. Households with High-Speed Internet Access By Region, 2000 100 Dial-up 90 High-speed 80 70 60 50 40 30 Percent of U.S. Households w/ Internet Access 20 10 0 Northeast Midwest South West Dial-up 89.0 90.8 89.3 88.1 High-speed 11.0 9.2 10.7 11.9 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A18 Percent of U.S. Households with High-Speed Internet Access By Income, 2000 100 Dial-up 90 High-speed 80 70 60 50 40 30 20 Percent of U.S. Households w/ Internet Access 10 0 Under $15,000- $20,000- $25,000- $35,000- $50,000- $75,000 and $15,000 19,999 24,999 34,999 49,999 74,999 over Dial-up 92.3 92.7 92.3 90.1 91.2 89.7 86.2 High-speed 7.7 7.3 7.7 9.9 8.8 10.3 13.8 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 103 Figure A19 Percent of U.S. Households with High-Speed Internet Access By Education, 2000 100 Dial-up 90 High-speed 80 70 60 50 40 30 20 Percent of U.S. Households w/ Internet Access 10 0 Elementary Some H.S. H.S. diploma Some college College degree or more Dial-up 91.2 91.2 91.3 90.1 87.5 High-speed 8.9 8.9 8.7 9.9 12.5 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A20 Percent of U.S. Households with High-Speed Internet Access By Age, 2000 100 Dial-up 90 High-speed 80 70 60 50 40 30 Percent of U.S. Households w/ Internet Access 20 10 0 Under 25 25-34 35-44 45-54 55+ Dial-up 87.8 88.5 89.3 88.8 91.0 High-speed 12.2 11.5 10.7 11.2 9.0 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration Page 104 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A21 Percent of U.S. Households with High-Speed Internet Access By Race / Hispanic Origin, 2000 100 Dial-up 90 High-speed 80 70 60 50 40 30 Percent of U.S. Households w/ Internet Access 20 10 0 White Black Hispanic Dial-up 89.2 90.2 91.1 High-speed 10.8 9.8 8.9 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A22 Percent of U.S. Households with High-Speed Internet Access By Type of Household, 2000 100 Dial-up 90 High-speed 80 70 60 50 40 30 Percent of U.S. Households w/ Internet Access 20 10 0 Married with children Male with children Female with children Family without children Dial-up 89.4 87.4 91.8 89.4 High-speed 10.6 12.6 8.2 10.6 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 105 Figure A23 Percent of U.S. Persons Using the Internet By Location 2000 60 50 40 30 Percent 20 10 0 At home Outside home Any Location No Internet use 35.7 19.4 44.4 55.7 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A24 Percent of U.S. Persons Using the Internet By Income, By Location 2000 80 At home 70 Outside home Any Location 60 50 40 Percent 30 20 10 0 Under 5,000- 10,000- 15,000- 20,000- 25,000- 35,000- 50,000- $5,000 9,999 14,999 19,999 24,999 34,999 49,999 74,999 75,000+ At home 13.1 8.4 11.9 15.1 17.8 25.9 36.3 48.3 62.8 Outside home 14.1 9.2 11.2 11.4 12.8 15.5 19.3 23.7 31.1 Any Location 22.3 15.5 20.0 23.3 27.2 35.7 46.5 57.7 70.1 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration Page 106 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A25 Percent of U.S. Persons Using the Internet By Race/Hispanic Origin, By Location 2000 60 At home Outside home 50 Any Location 40 30 Percent 20 10 0 White Black Asian Amer. & Pac. Isl. Hispanic At home 41.7 18.9 41.9 16.1 Outside home 21.2 15.6 22.8 11.6 Any Location 50.3 29.3 49.4 23.7 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A26 Percent of U.S. Persons Using the Internet At Home By Race/Hispanic Origin, By U.S., Rural, Urban, and Central City Areas 2000 50 U.S. 45 Rural Urban 40 Central City 35 30 25 Percent 20 15 10 5 0 White Black Asian Amer. & Pac. Isl. Hispanic U.S. 41.7 18.9 41.9 16.1 Rural 36.6 14.9 41.5 15.0 Urban 44.1 19.5 41.9 16.2 Central City 43.5 16.2 40.4 13.9 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 107 Figure A27 Percent of U.S. Persons Using the Internet Outside the Home By Race/Hispanic Origin, By U.S., Rural, Urban, and Central City Areas 2000 30 U.S. Rural 25 Urban Central City 20 15 Percent 10 5 0 White Black Asian Amer. & Pac. Isl. Hispanic U.S. 21.2 15.6 22.8 11.6 Rural 17.5 12.4 18.4 11.0 Urban 23.0 16.0 23.0 11.7 Central City 24.8 14.6 23.1 11.2 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A28 Percent of U.S. Persons Using the Internet By Education, By Location 2000 80 At home 70 Outside home Any Location 60 50 40 Percent 30 20 10 0 Elementary Some H.S. H.S. Diploma or GED Some College B.A. or more At home 4.7 26.2 26.0 46.5 62.4 Outside home 2.5 13.3 11.8 24.3 41.3 Any Location 6.5 33.6 33.3 57.6 75.0 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration Page 108 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A29 Percent of U.S. Persons Using the Internet By Household Type, By Location 2000 60 At home Outside home 50 Any Location 40 30 Percent 20 10 0 Married couple w/ Male household Female household Family Non-family child <18 w/ child <18 w/ child <18 households w/o child households At home 43.3 25.0 20.9 34.8 29.2 Outside home 19.0 15.7 17.6 17.0 26.7 Any Location 50.6 34.5 32.9 41.4 42.7 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A30 Percent of U.S. Persons Using the Internet By Age, By Location 2000 60 At home Outside home 50 Any Location 40 30 Percent 20 10 0 Under 25 years 24-34 years 34-44 years 45-54 years 55+ years At home 33.8 43.9 45.5 43.8 20.2 Outside home 18.7 28.9 24.8 23.4 7.2 Any Location 44.0 56.5 55.0 52.0 23.5 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 109 Figure A31 Percent of U.S. Persons Using the Internet By Gender, By Location 2000 50 At home 45 Outside home Any Location 40 35 30 25 Percent 20 15 10 5 0 Male Female At home 36.5 35.0 Outside home 20.1 18.7 Any Location 44.6 44.2 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A32 Percent of U.S. Persons Using the Internet Outside the Home By Selected Places, By U.S., Rural, Urban, and Central City Areas 2000 70 U.S. Rural 60 Urban Central City 50 40 30 20 Percent of Outside the Home Users 10 0 At Work At School:K-12 At Other School At Public Community Someone else's Library Center computer U.S. 62.7 18.9 8.3 9.6 0.5 13.8 Rural 55.2 25.5 6.9 8.7 0.3 16.3 Urban 64.8 17.0 8.7 9.9 0.6 13.1 Central City 64.0 16.0 10.2 11.0 0.7 14.0 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration Page 110 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A33 Percent of U.S. Persons Using the Internet Outside the Home By Income, By Selected Places 2000 90 At Work 80 At School:K-12 s At Other School 70 At Public Library 60 Someone else's pc 50 40 30 Percent of Outside the Home User 20 10 0 Under 5,000- 10,000- 15,000- 20,000- 25,000- 35,000- 50,000- $5,000 9,999 14,999 19,999 24,999 34,999 49,999 74,999 75,000+ At Work 19.5 22.1 23.9 31.8 39.5 51.5 63.0 70.2 76.9 At School:K-12 27.8 30.3 27.7 29.8 27.6 23.9 19.0 16.9 13.9 At Other School 27.4 23.1 16.8 12.0 12.1 8.8 6.5 5.7 6.7 At Public Library 16.5 21.8 23.2 18.2 13.3 13.1 10.0 7.7 5.4 Someone else's pc 27.2 30.8 29.0 29.3 28.5 21.4 16.6 10.5 6.1 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A34 Percent of U.S. Persons Using the Internet Outside the Home By Race/Hispanic Origin, By Selected Places 2000 70 At Work At School:K-12 60 At Other School s At Public Library 50 Someone else's pc 40 30 20 Percent of Outside the Home User 10 0 White Black Asian Amer. & Pac. Isl. Hispanic At Work 65.8 51.1 63.4 45.9 At School:K-12 16.9 26.3 16.5 31.5 At Other School 7.2 11.1 14.7 11.3 At Public Library 8.2 17.9 9.5 13.6 Someone else's pc 13.6 14.4 10.5 16.8 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 111 Figure A35 Percent of U.S. Persons Using the Internet Outside the Home at Schools (K-12) By U.S., Rural, Urban, and Central City Areas By Race/Hispanic Origin, 2000 60 U.S. Rural 50 Urban Central City 40 30 20 Percent of Outside the Home Users 10 0 White Black Asian Amer. & Pac. Isl. Hispanic U.S. 16.9 26.3 16.5 31.5 Rural 23.7 48.9 15.5 49.3 Urban 14.5 23.9 16.5 29.8 Central City 12.2 22.0 15.3 29.7 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A36 Percent of U.S. Persons Using the Internet Outside the Home at Work By U.S., Rural, Urban, and Central City Areas By Race/Hispanic Origin, 2000 80 U.S. Rural 70 Urban 60 Central City 50 40 30 20 Percent of Outside the Home Users 10 0 White Black Asian Amer. & Pac. Isl. Hispanic U.S. 65.8 51.1 63.4 45.9 Rural 57.0 35.3 58.1 35.2 Urban 68.9 52.7 63.6 47.0 Central City 70.8 49.8 64.3 45.2 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration Page 112 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A37 Percent of U.S. Persons Using the Internet Outside the Home By Education, By Selected Places 2000 100 At Work At School:K-12 90 At Other School s 80 At Public Library Someone else's pc 70 60 50 40 30 Percent of Outside the Home User 20 10 0 Elementary Some H.S. H.S. Diploma or GED Some College B.A. or more At Work 25.7 12.9 62.7 67.4 87.8 At School:K-12 39.7 61.3 7.9 6.4 4.5 At Other School 10.6 7.5 7.4 16.3 4.8 At Public Library 17.6 17.9 10.0 8.6 5.9 Someone else's pc 27.5 26.2 23.0 14.6 5.6 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A38 Percent of U.S. Persons Using the Internet Outside the Home By Household Type, By Selected Places 2000 80 At Work At School:K-12 70 At Other School s At Public Library 60 Someone else's pc 50 40 30 20 Percent of Outside the Home User 10 0 Married couple Male household Female Family Non-family w/ child <18 w/ child <18 household w/ households w/o child <18 child households At Work 57.8 40.1 35.2 76.0 73.5 At School:K-12 28.2 32.8 38.9 5.4 4.4 At Other School 6.3 6.6 9.5 10.2 9.4 At Public Library 10.4 9.9 16.1 6.7 8.0 Someone else's pc 11.3 22.4 22.9 10.4 17.0 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 113 Figure A39 Percent of U.S. Persons Using the Internet Outside the Home By Gender, By Selected Places 2000 70 At Work At School:K-12 60 At Other School At Public Library s Someone else's pc 50 40 30 20 Percent of Outside the Home User 10 0 Male Female At Work 64.5 60.8 At School:K-12 17.9 20.0 At Other School 7.4 9.2 At Public Library 8.7 10.6 Someone else's pc 13.0 14.6 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A40 Percent of U.S. Persons Using the Internet Outside the Home By Selected Places, By Employment Status 2000 90 Employed 80 Unemployed 70 Not in labor force 60 50 40 30 Percent of Outside the Home Users 20 10 0 At Work At School:K-12 At Other School At Public Library Someone else's pc Employed 81.0 7.2 6.5 6.2 10.4 Unemployed 0.0 26.1 21.4 24.8 40.9 Not in labor force 0.0 37.7 24.9 23.8 30.1 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration Page 114 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A41 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Income 2000 50 Don't want it 45 Cost, too expensive 40 Can use elsewhere 35 30 25 Percent 20 15 10 5 0 Under 5,000- 10,000- 15,000- 20,000- 25,000- 35,000- 50,000- $5,000 9,999 14,999 19,999 24,999 34,999 49,999 74,999 75,000+ Don't want it 21.8 25.0 26.1 18.9 30.8 29.8 25.9 28.8 27.5 Cost, too expensive 45.3 32.8 28.7 28.3 23.6 16.5 13.3 10.4 9.4 Can use elsewhere 5.9 5.5 4.2 8.0 4.2 9.5 10.6 10.4 18.5 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A42 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Race/Hispanic Origin 2000 35 Don't want it Cost, too 30 expensive Can use elsewhere 25 20 Percent 15 10 5 0 White Black Asian Amer. & Pac. Isl. Hispanic Don't want it 28.9 28.8 26.2 23.1 Cost, too expensive 16.4 18.2 13.0 23.7 Can use elsewhere 10.1 8.4 7.6 7.2 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 115 Figure A43 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Education 2000 40 Don't want it 35 Cost, too expensive Can use elsewhere 30 25 20 Percent 15 10 5 0 Elementary Some H.S. H.S. Diploma or GED Some College B.A. or more Don't want it 30.2 33.9 30.7 25.2 26.7 Cost, too expensive 22.8 20.4 17.3 20.4 11.6 Can use elsewhere 4.5 3.8 6.2 8.8 17.0 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A44 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Household Type 2000 40 Don't want it 35 Cost, too expensive Can use elsewhere 30 25 20 Percent 15 10 5 0 Married couple w/ Male household Female Family Non-family child <18 w/ child <18 household w/ households w/o child <18 child households Don't want it 25.8 32.8 20.8 35.8 25.2 Cost, too expensive 17.6 22.5 29.9 12.6 15.5 Can use elsewhere 7.6 7.2 8.1 8.6 14.9 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration Page 116 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A45 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Age 2000 40 Don't want it Cost, too 35 expensive Can use elsewhere 30 25 20 Percent 15 10 5 0 Under 25 years 24-34 years 34-44 years 45-54 years 55+ years Don't want it 19.0 23.5 24.1 26.8 36.7 Cost, too expensive 26.1 17.8 19.9 16.2 14.4 Can use elsewhere 13.4 16.0 9.6 10.2 4.7 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A46 Percent of U.S. Persons Using the Internet At Home By Type of Use 2000 90 80 70 60 50 40 30 Percent of At Home Users 20 10 0 Games / E-mail Info search Check news Take Do job Shop, pay courses related tasks bills Job search entertainmen t 84.8 58.1 46.1 32.7 27.3 33.6 16.4 6.0 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Page 117 Figure A47 Percent of U.S. Persons Using the Internet At Home By Income, By Type of Use 2000 100 E-mail 90 Info search Take courses 80 Do job related tasks 70 Job search 60 50 40 30 Percent of At Home Users 20 10 0 Under 5,000- 10,000- 15,000- 20,000- 25,000- 35,000- 50,000- $5,000 9,999 14,999 19,999 24,999 34,999 49,999 74,999 75,000+ E-mail 90.5 87.4 86.8 83.6 82.0 83.7 83.7 84.6 85.5 Info search 58.8 58.7 58.3 57.7 53.3 56.8 55.8 58.2 61.1 Take courses 51.4 43.9 35.6 37.7 30.2 31.0 32.4 32.9 32.2 Do job related tasks 21.0 15.2 17.2 20.2 17.6 22.5 22.9 27.5 33.8 Job search 26.5 23.6 23.7 20.4 19.5 19.5 17.8 16.0 14.7 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A48 Percent of U.S. Persons Using the Internet At Home By Race/Hispanic Origin, By Type of Use 2000 100 E-mail 90 Info search Take courses 80 Do job related tasks 70 Job search 60 50 40 30 Percent of At Home Users 20 10 0 White Black Asian Amer. & Pac. Isl. Hispanic E-mail 85.9 77.1 85.2 76.7 Info search 58.5 56.8 58.1 53.8 Take courses 31.0 40.6 38.4 43.1 Do job related tasks 27.5 27.9 28.1 23.3 Job search 15.1 24.8 23.0 19.6 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration Page 118 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION Figure A49 Percent of U.S. Persons Using the Internet At Home By Education, By Type of Use 2000 100 E-mail 90 Info search Take courses 80 Do job related tasks 70 Job search 60 50 40 30 Percent of At Home Users 20 10 0 Elementary Some H.S. H.S. Diploma or GED Some College B.A. or more E-mail 80.1 84.2 84.7 87.6 90.1 Info search 36.4 45.5 53.5 63.1 72.6 Take courses 38.3 59.7 17.8 28.7 24.0 Do job related tasks 5.8 6.8 19.6 28.0 48.2 Job search 8.9 8.7 15.4 19.9 22.7 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. Figure A50 Percent of U.S. Persons Using the Internet At Home By Type of Use, By Employment Status 2000 100 Employed 90 Unemployed Not in labor force 80 70 60 50 40 Percent of At Home Users 30 20 10 0 E-mail Info search Take courses Do job related tasks Job search Employed 87.1 64.5 25.8 38.7 20.1 Unemployed 88.0 63.5 39.1 26.2 55.9 Not in labor force 88.8 56.2 33.3 7.0 10.1 Source: NTIA and ESA, U.S. Department of Commerce, using August 2000 U.S. Bureau of the Census Current Population Survey supplement. National Telecommunications and Information Administration Economics and Statistics Administration APPENDIX TABLE 1-Reasons for discontinuing home Internet use, by selected characteristics of reference person, Total, Urban, Rural, Central City, 2000 (Numbers in Thousands) Total USA CAN USE COST, TOO NOT ENOUGH TIME NOT USER PROBLEMS WITH TOTAL ----ELSEWHERE----- ----EXPENSIVE----- ----TO USE IT----- ----NOT USEFUL---- -----FRIENDLY---- -SERVICE PROVIDER HHLDS No. % No. % No. % No. % No. % No. % All Households 3,953 504 12.76 487 12.33 395 10.01 166 4.20 60 1.52 115 2.91 FAMILY INCOME Under $5,000 74 16 22.18 19 25.09 3 3.96 4 5.29 0 0.00 0 0.00 5,000-9,999 183 7 3.81 22 12.05 17 9.47 6 3.14 0 0.00 5 2.68 10,000-14,999 211 18 8.54 29 13.50 12 5.85 4 1.71 8 3.94 0 0.00 15,000-19,999 192 26 13.66 30 15.59 12 6.29 10 5.38 3 1.32 7 3.66 20,000-24,999 269 25 9.44 49 18.41 11 4.12 14 5.24 2 0.78 2 0.86 25,000-34,999 600 62 10.28 55 9.14 72 12.07 29 4.75 9 1.46 26 4.27 35,000-49,999 636 60 9.44 80 12.59 66 10.34 21 3.29 12 1.87 19 3.03 50,000-74,999 697 105 15.10 69 9.89 98 14.05 50 7.12 6 0.92 17 2.42 75,000+ 612 137 22.42 46 7.52 63 10.32 19 3.10 6 0.94 25 4.13 Not reported 480 47 9.89 89 18.55 41 8.45 10 2.15 14 3.01 14 2.88 AGE Under 25 years 479 66 13.71 53 11.11 22 4.50 16 3.40 0 0.00 11 2.29 25-34 years 1,102 189 17.15 124 11.28 140 12.70 29 2.60 15 1.39 24 2.17 35-44 years 1,117 125 11.14 156 13.99 126 11.25 48 4.32 8 0.68 43 3.87 45-54 years 696 70 10.09 96 13.74 39 5.56 34 4.93 8 1.13 20 2.90 55+ years 559 55 9.87 58 10.35 70 12.45 38 6.87 29 5.26 17 3.00 RACE White Not Hispanic 3,156 400 12.66 379 12.02 309 9.79 140 4.43 51 1.61 83 2.64 Black Not Hispanic 347 36 10.35 55 15.80 35 9.96 17 4.91 6 1.66 13 3.89 AIEA Not Hispanic 26 0 1.67 10 38.32 3 12.93 0 0.00 0 0.00 1 3.64 API Not Hispanic 121 12 9.64 12 9.58 16 12.97 3 2.49 0 0.00 6 4.88 Hispanic 303 57 18.76 32 10.44 33 10.86 6 2.02 4 1.19 11 3.74 GENDER Male 2,142 259 12.09 275 12.86 246 11.47 93 4.36 41 1.93 62 2.91 Female 1,811 246 13.56 212 11.70 150 8.28 73 4.01 19 1.04 53 2.91 EDUCATIONAL ATTAINMENT Elementary: 0-8 years 56 3 5.47 8 14.66 3 5.23 0 0.00 3 5.64 3 5.72 Some H.S.: no diploma 222 19 8.61 40 17.88 14 6.38 10 4.70 4 1.84 5 2.05 H.S. Diploma/GED 1,250 91 7.25 210 16.79 141 11.29 57 4.57 22 1.75 36 2.88 Some College 1,242 114 9.14 131 10.55 157 12.64 47 3.75 11 0.92 35 2.83 Bachelors degree or more 1,183 278 23.51 98 8.32 80 6.79 52 4.37 20 1.66 36 3.05 HOUSEHOLD TYPE Mar Couple w/Child<18 1,180 103 8.70 197 16.67 173 14.67 51 4.32 19 1.57 36 3.07 Male Hhldr w/Child<18 101 11 10.56 13 13.29 6 6.24 2 2.01 7 7.09 3 3.10 Female Hhldr w/Child<18 506 34 6.72 77 15.18 41 8.18 17 3.41 4 0.80 17 3.35 Family Hhld w/o Child<18 784 113 14.48 79 10.05 83 10.57 20 2.58 19 2.47 21 2.69 Non-family Households 1,382 244 17.62 122 8.79 92 6.65 75 5.46 11 0.80 38 2.73 EMPLOYMENT Employed 3,194 433 13.56 372 11.65 352 11.02 110 3.45 34 1.07 88 2.76 APPENDIX TABLE 1-Reasons for discontinuing home Internet use, by selected characteristics of reference person, Total, Urban, Rural, Central City, 2000 (Numbers in Thousands) Total USA CONCERN WITH DON'T NO LONGER COMPUTER COMPUTER ---CHILDREN----- -----WANT IT------ --OWNS COMPUTER--- ----MOVED--- -REQUIRES REPAIR-- -CAPACITY ISSUES-- ---OTHER---- No. % No. % No. % No. % No. % No. % No. % All Households 89 2.26 406 10.26 671 16.96 243 6.14 383 9.70 46 1.16 387 9.79 FAMILY INCOME Under $5,000 0 0.00 3 3.60 17 23.36 8 10.65 4 4.78 0 0.00 1 1.08 5,000-9,999 2 1.17 11 6.08 61 33.30 21 11.70 14 7.82 0 0.00 16 8.76 10,000-14,999 3 1.18 21 10.06 57 26.83 26 12.11 24 11.41 0 0.00 10 4.87 15,000-19,999 6 3.00 7 3.81 36 18.59 15 7.62 27 14.11 3 1.60 10 5.39 20,000-24,999 9 3.21 16 5.96 71 26.49 17 6.22 33 12.22 7 2.77 11 4.27 25,000-34,999 19 3.14 56 9.41 94 15.69 33 5.55 72 12.07 3 0.58 70 11.59 35,000-49,999 14 2.25 70 11.02 132 20.83 27 4.28 73 11.52 8 1.28 53 8.27 50,000-74,999 16 2.28 70 10.06 110 15.82 55 7.86 40 5.75 5 0.68 56 8.06 75,000+ 19 3.12 64 10.41 60 9.83 32 5.31 73 11.93 11 1.74 57 9.24 Not reported 2 0.45 87 18.11 32 6.68 9 1.86 23 4.76 8 1.72 103 21.50 AGE Under 25 years 2 0.44 35 7.34 104 21.70 74 15.38 56 11.76 0 0.00 40 8.37 25-34 years 9 0.81 81 7.34 233 21.18 68 6.18 73 6.62 15 1.34 102 9.24 35-44 years 52 4.68 109 9.76 145 12.97 57 5.08 112 9.99 15 1.32 122 10.94 45-54 years 17 2.39 100 14.39 108 15.44 28 4.06 106 15.23 12 1.66 59 8.48 55+ years 9 1.69 80 14.38 81 14.48 16 2.88 36 6.52 5 0.82 64 11.43 RACE White Not Hispanic 64 2.03 332 10.53 564 17.89 193 6.10 286 9.08 38 1.19 316 10.03 Black Not Hispanic 1 0.15 33 9.56 54 15.55 13 3.88 42 12.02 3 0.78 40 11.51 AIEA Not Hispanic 2 8.20 0 0.00 1 4.21 4 15.48 0 0.00 0 0.00 4 15.55 API Not Hispanic 2 1.74 19 15.89 7 6.13 14 11.61 19 15.33 4 2.99 8 6.73 Hispanic 20 6.72 21 6.89 44 14.40 19 6.18 37 12.09 2 0.61 18 6.10 GENDER Male 36 1.67 224 10.47 291 13.58 151 7.04 191 8.91 25 1.18 247 11.54 Female 54 2.95 181 10.01 380 20.97 92 5.08 193 10.63 21 1.13 140 7.72 EDUCATIONAL ATTAINMENT Elementary: 0-8 years 3 4.85 2 4.04 16 28.48 3 4.64 4 6.99 1 1.46 7 12.82 Some H.S.: no diploma 7 2.95 25 11.36 45 20.42 6 2.77 29 12.92 4 1.85 14 6.28 H.S. Diploma/GED 36 2.86 144 11.51 202 16.14 61 4.85 128 10.24 16 1.29 107 8.57 Some College 30 2.40 117 9.41 219 17.65 86 6.95 143 11.50 17 1.36 135 10.89 Bachelors degree or mo 14re 1.22 117 9.91 188 15.92 87 7.36 80 6.76 8 0.67 123 10.44 HOUSEHOLD TYPE Mar Couple w/Child<18 44 3.70 118 9.98 98 8.34 48 4.06 165 13.99 21 1.76 108 9.17 Male Hhldr w/Child<18 0 0.00 11 11.06 25 24.87 4 3.81 16 15.95 0 0.00 2 2.03 Female Hhldr w/Child<1 298 5.79 39 7.77 117 23.06 25 5.03 61 12.10 4 0.70 40 7.91 Family Hhld w/o Child< 1418 1.75 95 12.09 103 13.16 47 6.05 77 9.78 14 1.77 99 12.58 Non-family Households 3 0.20 143 10.32 327 23.68 118 8.56 64 4.66 8 0.55 138 10.00 EMPLOYMENT Employed 68 2.13 322 10.09 538 16.84 217 6.80 306 9.57 36 1.13 317 9.93 FALLING THROUGH THE NET: TOWARD DIGITAL INCLUSION PAGE 119 Page 122 FALLING THROUGH THE NET : TOWARD DIGITAL INCLUSION National Telecommunications and Information Administration Economics and Statistics Administration