the information dividend: why it makes you happier

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Paul Flatters – Managing Partner, Trajectory

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Event presentation by Paul Flatters, Managing Partner of Trajectory Partnership

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Page 1: The Information Dividend: Why IT makes you happier

Paul Flatters – Managing Partner, Trajectory

Page 2: The Information Dividend: Why IT makes you happier

Background• Wellbeing and life satisfaction an increasing focus for

academics and policy makes• Previous research on impact of IT focussed on productivity

and economics• Conventional wisdom often assumes negative impact of IT on

life satisfaction• However, little research has been done on impact of IT on life

satisfaction• This research seeks to establish any impact that IT access

and usage has on life satisfaction

Page 3: The Information Dividend: Why IT makes you happier

• Secondary analysis of World Values Survey (WVS)– 35,000+ individual responses, 39 countries– Multiple regression analysis

• Secondary analysis of British Household Panel Survey (BHPS)– 10,000+ individual responses in the UK– Multiple regression analysis

• Primary qualitative research– In-depth interviews in London and West Midlands

• Primary quantitative research– 1,000 nationally representative sample

Research Methods

Page 4: The Information Dividend: Why IT makes you happier

IT has a positive impact on life satisfaction

• Regression analysis – both WVS and BHPS - shows IT has a direct, positive impact on life satisfaction…

• … even when controlling for income and other factors known to be important in determining well-being

• So, there is an ‘Information Dividend’

Page 5: The Information Dividend: Why IT makes you happier

The indirect link between IT and life satisfaction

IT INCREASES

Sense of freedom/control

which IMPROVES

Well-being

Page 6: The Information Dividend: Why IT makes you happier

IT empowers the disempowered• Both WVS and BHPS analysis- suggest the Information Dividend has

most impact on the most disadvantaged:– Those on low incomes (relative to others in their country)…– … and those on mid to low incomes in the UK (household

incomes of £14,000 to £28,000 pa)– Those with fewest educational qualifications

• Primary research suggests that major benefits to this group include: – Practical benefits - educational and money saving online – Emotional benefits derived from increased social contact, sense

of ‘equality’ and empowerment– Benefits achieved despite fears and ‘technophobia’

Page 7: The Information Dividend: Why IT makes you happier

“For all the frightening stuff that could happen, the empowerment actually does happen. It is frightening what is possible and we all know someone who has been scammed. However, things like the

comparison websites are fantastic”(female, London)

Page 8: The Information Dividend: Why IT makes you happier
Page 9: The Information Dividend: Why IT makes you happier
Page 10: The Information Dividend: Why IT makes you happier

• Both WVS and BHPS show women benefit more than men• Results particularly strong for women in developing nations –

perhaps because women have socially controlled roles?• Primary research revealed men and women have different

relationships with IT• For example, IT access leads to an uplift in health satisfaction

for women as well as providing important social links

Digital Gender divide : Women benefit most

Page 11: The Information Dividend: Why IT makes you happier

“Being in touch with people, I am on my own quite a lot with two young children, its (I-phone) either in my jeans

pocket or the side of my bed. Its an important part of my life”

(female, Midlands)

Page 12: The Information Dividend: Why IT makes you happier

Biggest benefits go to new users• BHPS shows a big improvement in life satisfaction comes to new users of

the internet • New users of the internet derive most benefit from ‘social’ uses of the

internet - social networking and instant messaging• More experienced users attach greater benefit to email and online

shopping• Primary research in the UK suggests a restriction of IT use for experienced

users would have a strong negative impact on life satisfaction

Page 13: The Information Dividend: Why IT makes you happier

The important social role of IT• Our research suggests that the social uses of IT were an important

component of the Information Dividend• This challenges the ‘loner’ stereotype of IT users and the assertion that IT

usage is linked to social isolation• Rather, people benefit from additional social contact with family and

friends facilitated by IT

Page 14: The Information Dividend: Why IT makes you happier

“It means I’m connected - especially for us not in our own country we feel homesick and it makes us connected. That’s an amazing thing.........Although its through a computer it sounds odd but it

gives you a nice feeling”(male immigrant, London)

Page 15: The Information Dividend: Why IT makes you happier

International Comparisons

Page 16: The Information Dividend: Why IT makes you happier

The international ‘Information Wellbeing ‘ (IWB) league table

• IWB index (adjusted for GDP) suggests Zambia outperforms 38 other nations in delivering information wellbeing

• China is bottom of the league table –not surprising given restricted use of the internet?

• The UK comes 11th – performing better than the US and comparable European countries such as France and Germany

• However, room for improvement if UK is to perform like European pace setters Sweden and Netherlands

Page 17: The Information Dividend: Why IT makes you happier

Implications• Enabling greater access to IT clearly has a positive impact on the most

disadvantaged in society• These benefits are social as well as economic• Empowering beneficial use of information and communications

technology through education – technophobia remains a barrier• Once barriers overcome, IT usage result in a significant and quick uplift in

life satisfaction• Portrayal of IT use - particularly social networking and social aspects

of IT use - should be addressed• Lesson for social marketers and others such as charities dealing with

the issue of digital access and equality

Page 18: The Information Dividend: Why IT makes you happier

Implications• Profession and policy makers may want to address the sense found among

our qualitative research participants that IT is complex and that pace of change is too rapid

• Women are the key beneficiaries of access to IT in the UK and in developing countries…

• …focusing on enabling them to overcome ‘fear’ of IT accelerate solutions to digital exclusion

• Does this require a re-thinking of attitudes to involving women in technology education as well as targeting from a social policy point of view?