By Francella Ochillo
In regions where the digital divide is prevalent, the impact spreads far beyond households or businesses that lack reliable broadband connections. Concentrations of disconnected populations can put a strain on the entire community.
There is a direct correlation between broadband adoption and better labor market outcomes. For instance, less than ten percent of residents have broadband access in Sanilac or Montmorency County. They have vastly different employment opportunities compared to Oakland or Midland County where most residents have the requisite connectivity to work from home. Reliable broadband could increase job prospects and accelerate re-employment for residents in all four areas. But in Sanilac or Montmorency County, getting online may be the only way to expand employment opportunities past county lines or to make an expansive job search possible in the first place.
Job seekers without reliable broadband access will face unnecessary challenges entering the workforce, researching employers, creating resumes, and attempting to upskill. The one-third of Michiganders making less than $20,000 per year who do not have broadband access of any kind will not be able to take advantage of remote work opportunities. They disproportionately rely on manual labor. Likewise, potential employers that are invested in developing Michigan’s workforce perpetually miss out on them – homegrown talent.
Depictions of the homework gap that helped make closing the digital divide urgent also showcase the community-wide impact. In areas like the Upper Peninsula, students struggle with unstable broadband connections at home and school. Not being able to complete homework assignments or online applications requires teachers to adjust academic requirements for all students, affecting those with and without ready access to broadband. Still, Michigan students with high-speed internet access at home outperform students who rely on their cell phones or cope without broadband connections at home. The difference in their grade point averages has serious workforce development ramifications. It can determine who matriculates into high-skilled, high-income careers versus low-wage, low-skilled jobs.
In areas where reliable broadband connectivity is scarce, graduates have natural incentives to leave their hometowns to find professional opportunities, much like older residents may leave in search of specialized healthcare. Across the U.S., residents in rural areas travel farther to see doctors and are more likely to skimp on preventative care. Telemedicine programs that are widely accessible and provide hospital-quality treatment could allow millions of Americans to age in place. At the household level, diverting residents from one emergency room visit alone could generate hundreds of dollars in avoided costs. A healthier workforce equates to higher productivity and investment potential for their communities writ large.
One in ten Michiganders does not have broadband access at home. Households with in-home broadband connections enjoy higher incomes and cost savings. Being able to get online also helps residents keep more earnings in their pockets instead of having to spend them on banking fees. For example, 247 bank branches in Michigan permanently closed last year. As banks continue to consolidate and migrate financial services exclusively online, Michiganders with limited connectivity will pay a premium for essential services like shopping for mortgages and paycheck processing fees. Some will be denied service at cash-free businesses.
The lesser-known impacts of the digital divide may be just as consequential as the issues that make headlines. Notably, slow small business growth and industry disinvestments can stall job creation, wages, and property values in digitally disadvantaged areas. Lower revenues force local governments to cut spending.
Broadband gaps trigger cycles of missed opportunities and economic ramifications that are rarely captured on maps. For instance, residents understood what was at stake when poor internet connections, capped data plans, and inadequate access spread in Washtenaw County. Volunteers and local officials created a Broadband Task Force focused squarely on the County’s digital divide. Ten years later, Task Force members are preparing to celebrate achieving its universal broadband goals.
Merit Network has expansive resources for local leaders in every phase of a broadband program. Its consortium of policy experts, technicians, and digital inclusion practitioners specializes in addressing broadband access and adoption challenges across Michigan.
Local leaders will also find a partner at Next Century Cities, a nonprofit organization that elevates community-based perspectives into broadband policymaking. Partnering with local leaders nationwide, NCC’s work illustrates the many ways in which ubiquitous broadband can enable or inhibit what residents and communities can do and become.