Issues

Computer Ownership Up Sharply in the 1990s

U.S. Department of Labor

Bureau of Labor Statistics

Summary 99-4 March 1999

in Labor Statistics

Graphical user interfaces, multimedia CD-ROMs, and the

Internet have increased accessibility and people’s understanding of computers. And greater understanding has

brought substantially greater ownership.

Between 1990 and 1997, the percentage of

households1

 owning computers increased

from 15 percent to 35 percent. During this

time, the amount spent by the average

household on computers and associated

hardware more than tripled. This report

briefly examines the demographics of computer ownership (also see table ) as reported by households participating in the

interview component of the Bureau’s Consumer Expenditure survey.2

Education A household’s level of education significantly affects computer ownership: Those households with the highest

levels of education had the greatest percentage of computer ownership. In 1997,

66 percent of American households whose

reference person3 had attended graduate

school reported owning a computer, compared with less than 12 percent of those

headed by one who did not graduate from

high school. College graduates had the

largest increase in ownership, more than

doubling from 24 percent in 1990 to 56 percent in 1997 (see chart). High school graduates also showed a significant increase in

computer ownership, from 9 percent in 1990

to 23 percent in 1997.

Age. Consumer units in the age 45-54

group were the most likely to own a PC,

with a 46-percent ownership rate in 1997,

an increase of 26 percentage points from

1990. As a result, the 45-54 age group had

surpassed the 35-44 age group, which was

most likely to own a computer in 1990. By

1997, the 35-44 age group was in second

place, with 44 percent of them owning computers. Relatively few consumer units

over the age of 65 owned computers in

either year, but consumer units with reference persons aged 55-64 had the largest

increase in computer ownership.

Race. Between 1990 and 1997, all racial

groups increased their ownership of personal computers, however, there was a

large disparity among the different groups

in both years. Ownership among blacks

more than doubled between 1990 and 1997,

from 7 percent to 18 percent. Asians

showed the largest percentage point

change in ownership, growing from 25

percent in 1990 to 49 percent in 1997. In

both years, Asians showed the highest

ownership and blacks the lowest ownership among all the groups. Ownership

among whites grew from 16 percent in 1990

to 36 percent in 1997.

Income. It’s almost axiomatic that the highest income groups will have the largest

percentage of computer ownership. Al1

 In this report, a “household” is defined as a

consumer unit that includes members of a household related by blood, marriage, adoption or other

legal arrangement; a single person living alone

or sharing a household with others but who is

financially independent; or two or more persons

living together who share responsibility for at

least two out of three major types of expenses—

food, housing, and other expenses. Students living in university-sponsored housing are also included in the sample as separate consumer units.

The terms “consumer unit” and “household” are

used interchangeably in this summary. 2

 Inventory of durable goods is collected during the first interview; any purchases of computers after the first interview are not reflected in

these data. 3

 The reference person is the first member

mentioned by the respondent when asked to

“Start with the name of the person or one of the

persons who owns or rents the home.” It is with

respect to this person that the relationship of

other consumer unit members is determined.

0

10

20

30

40

50

60

70

8th grade or

less

Some high

school

High school

graduate

Some

college

College

graduate

Graduate

school

Percent of households owning computers by education level of the

reference person, Consumer Expenditure Survey, 1990 and 1997

1990 1997
FIRST CLASS MAIL

Postage and Fees Paid

U.S. Department of Labor

Permit No. G-738

U.S. DEPARTMENT OF LABOR

Bureau of Labor Statistics

Postal Square Building, Rm. 2850

2 Massachusetts Ave., NE

Washington, DC 20212-0001

Official Business

Penalty for Private Use, $300

Address Service Requested

most two-thirds of the households in the

top 20-percent income group (quintile 5)4

own computers, as do almost half in the

second highest income group. The second highest income group also showed

the fastest growth in ownership, more than

doubling between 1990 and 1997. Households in the lowest two income groups also

had the lowest rate of computer ownership, with less than 1 in every 5 owning

PCs in 1997. But they also showed significant growth in computer ownership—almost tripling over the 1990-97 period—as

computer prices have declined.

Region. Over two-fifths of the households

in the West owned computers, more than

in any other region. The Midwest and the

Northeast mirrored the national average,

with about one third of the consumer units

owning computers. At slightly less than

30 percent, the South’s share of PC ownership was the lowest among the regions,

but only marginally so when compared

with the Midwest (see table). The ownership patterns by region in 1997 also existed in 1990, with similar growth rates in

ownership across the regions.

Additional information

For more information about the data presented here, contact Tom Rubey in the

Division of Consumer Expenditure Surveys at (202) 606-6900, or by E-mail at

Rubey_T@bls.gov. To find Consumer Expenditure Survey data on the Internet, go

to http://stats.bls.gov/csxhome.htm, the

BLS Consumer Expenditure Survey home

page.

Material in this publication is in the

public domain and, with appropriate credit,

may be reproduced without permission.

This information is available to sensory

impaired individuals upon request. Voice

phone: (202) 606-7828; Federal Relay Service: 1-800-877-8339.

Percent of households owning computers

by demographic characteristics, Consumer

Expenditure Interview Survey, 1990 and

1997

1990 1997

All consumer units ...... 15.2 34.6

Education

8th grade or less ....... 2.8 6.9

Some high school ...... 6.9 11.5

High school graduate 8.6 22.5

Some college ............. 19.4 39.9

College graduate ....... 23.7 56.2

Graduate school ........ 37.2 65.6

Age

Less than 25 .............. 13.4 31.6

25-34 .......................... 14.8 37.6

35-44 .......................... 24 44

45-54 .......................... 20 45.8

55-64 .......................... 12.3 32.2

65-74 .......................... 6.3 15.7

75 or over .................. 2.3 6.6

Race

White .......................... 16.0 36.1

Black .......................... 6.7 17.9

Asian .......................... 25.0 49.1

Income

Quintile 1 .................... 6.9 17.1

Quintile 2 .................... 6.6 17.8

Quintile 3 .................... 11.7 28

Quintile 4 .................... 17.7 44.6

Quintile 5 .................... 33.2 65.4

Region

Northeast ................... 15.3 36.2

Midwest ...................... 13.3 32.6

South .......................... 12.8 29.8

West ........................... 21.0 41.2

Characteristic

4

 Complete income reporters are ranked in

ascending order, according to the level of total

before tax income reported by the consumer unit.

The ranking is then divided into five equal groups.

Incomplete income reporters are not ranked and

are shown separately.