Does digital inclusion affect quality of life? Evidence from Australian household panel data

The evidence on the role of information and communication technology (ICT) in enhancing quality of life (QoL) is mixed and the precise nature of this relationship is not yet fully understood. Existing single equation-based empirical works have provided a number of specific insights, but there remains a gap in our understanding of the association between digital inclusion and QoL. The current study seeks to fill this gap by capturing the simultaneous association between digital inclusion and QoL. This study employs simultaneous equation models based on a two-stage and full-information likelihood method using a household-level longitudinal dataset of Australia to explore the relationship between QoL and digital inclusion. This research confirms that digital inclusion significantly predicts QoL and vice versa. Socio-economic advantages, remoteness, rural-urban divide and lifestyle also appear to be significant determinants of the QoL. Findings from the study imply that to promote digital inclusion, policymakers should emphasise not only supply-side issues but also demand-side strategies including the enhancement of digital skills and affordability for the users.