Towards the alternative measurement: Discovering the relationships between technology adoption and quality of life in Indonesia

The vast majority of the studies investigating telecommunication development (diffusion of mobile phone, Internet, the broadband, etc.) that have been carried out in the literatures aim at assessing the impact on economic indicators, mainly the Gross Domestic Product (GDP), whereas little attention has actually been paid to investigate the other measurement which reflects a more direct linkage to the individual welfare, for instance the quality of life (QOL) indicators. Following the current counterargument for using the GDP as the goal of economic development, this paper investigates a survey data in Indonesia, observing the relationships between the experience to technology (the length of mobile phone ownership) and technology adoption (internet access) in affecting quality of life (QOL) at individual level. The QOL index is proxied by two indicators which are equally weighted; the objective measurement represented by income level and subjective perceived QOL following the study by Costanza et al., (2007). To operationalize these aims, the model is investigated in two sequential ways; first by determining binomial probit on the Internet access demand equation and then putting the predicted probability of the first equation into second equation of the ordered probit model. The model is further analyzed through the return to education-type equation (Card, 2001) to see the impact of experience to technology and internet access on the QOL index. The results indicate that whereas the access to the Internet is not statistically significant affecting QOL, experience to technology plays an important role. Additionally, the experience of technology (measured at its mean value of 3.5 years) affects the likelihood to have a lower QOL index around 49% and to achieve a higher QOL index in Indonesia around 12%. A year additional of ownership reduces the likelihood on a lower QOL by 3.6% and increases the likelihood to obtain a higher QOL by 2%.