Abstract

Digital literacy has become a critical determinant of youth participation and competitiveness in the modern digital economy. As technological systems increasingly influence employment, entrepreneurship, education, and civic engagement, young people require more than basic ICT exposure they need the advanced competencies necessary to navigate, adapt to, and innovate within digital environments. However, significant disparities persist between digital access and meaningful digital use, particularly in low- and middle-income regions where infrastructure limitations, affordability challenges, and uneven skills development hinder youth empowerment. This paper provides a comprehensive analysis of how digital literacy functions as a pathway to economic participation by examining its influence on employability, entrepreneurial capacity, innovation readiness, and civic involvement. Using comparative policy frameworks and case studies from Ghana, the European Union (EU), and the ASEAN region, the study evaluates how institutions, education systems, and labour markets enable or constrain the conversion of digital skills into tangible socio-economic opportunities. The review identifies persistent barriers, including inadequate infrastructure, limited teacher competencies, gender inequalities, and fragmented policy implementation. Building on these findings, the paper proposes an integrated model for youth digital empowerment that aligns curriculum reform, broadband expansion, institutional capacity building, and public-private partnerships. It further emphasizes the need for gender-responsive interventions, community-based learning ecosystems, and standardized digital credentialing systems to ensure equitable participation. Overall, the study underscores that digital literacy is not merely a technical skillset but a foundational capability that shapes young people's ability to participate, innovate, and prosper within an increasingly digital global economy.

References

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