E-government's hidden inequality: Why spending on online services can be regressive and how to avoid it

The purpose of this study is to investigate the determinants of governmental online services' use. Extensive digital divide literature's findings show that the chances of using online services - governmental in this case- vary extremely from one population group to another. Consequently, the groups that already accumulate several socioeconomic and digital advantages are the ones with considerably higher chances to enjoy the benefits of online services, thus perpetuating the rich-get-richer circle of inequalities. This document tries to present empirical evidence about this phenomenon in Latin America, using a nationally representative sample of 15 years and older Uruguayan Internet users, based on the World Internet Project + Uruguay 2013 survey. A binary logistic model regressing the chances of having ever used online governmental services is developed, taking into account stratification and digital divide hypotheses. Findings show that socioeconomic status (highest education level achieved, and adult ages), digital divide variables (more years since started using the Internet and daily frequency of use) and ownership of electronic means of payment are strong predictors of e-services' use. Simulations are developed to demonstrate how diverse ideal type-like Internet users have strikingly different probabilities of engaging with online governmental services. The document ends discussing the role of public policies to reduce the regressive externalities of e-government investments in a context of high social and digital stratification, presenting some of the initiatives the Uruguayan government has already developed to promote digital inclusion as good study cases.