Does broadband internet reduce the unemployment rate? Evidence for Germany

Czernich, Nina

doi:10.1016/j.infoecopol.2014.10.001

Cited by 76 publications

(40 citation statements)

References 13 publications

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“…Whereas the former measures the intention-to-treat effect, the latter directly impacts economic outcomes such as employment in particular and is a function of broadband availability. Accordingly, we estimate a reduced form where the estimated coefficients represent a proportional effect which is smaller than the effect via broadband usage (see Czernich, 2014 provide data on which municipality received state aid as well as broadband coverage. All variable definitions and sources are summarized in Table A.1 in the Annex.…”

Section: Instrumental Variable Estimation Of the Impact Of Broadband mentioning

confidence: 99%

Does State Aid for Broadband Deployment in Rural Areas Close the Digital and Economic Divide?

Briglauer¹,

Dürr

Falck

et al. 2016

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. http://ftp.zew.de/pub/zew-docs/dp/dp16064.pdf Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar. Terms of use: Documents inDis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. DOES STATE AID FOR BROADBAND DEPLOYMENT IN RURAL AREAS CLOSE THE DIGITAL AND ECONOMIC DIVIDE?Wolfgang Briglauer ♣ , Niklas S. Dürr † , Oliver Falck° and Kai Hüschelrath * October 2016 AbstractWe evaluate the impact of a major European state aid program for broadband deployment applied to rural areas in the German State of Bavaria in the years 2010 and 2011. Using difference-in-differences estimation strategies, we find that aided municipalities havedepending on broadband quality -a between 16.8 and 23.2 percent higher broadband coverage than non-aided municipalities. This increase in broadband coverage -closing the digital divide -results in an increase of on average seven employed individuals living in the respective aid-receiving municipalities while leaving the number of employed or selfemployed individuals or wages unaffected. We therefore conclude that an increase in broadband coverage through state aid prevents rural areas from depopulation, but does not contribute to a further closing of the economic divide in the form of creating new jobs.JEL Class: D62; D73; G38; H23; J23; K23; L52; L96; L98; R23

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Section: Instrumental Variable Estimation Of the Impact Of Broadband mentioning

confidence: 99%

Does State Aid for Broadband Deployment in Rural Areas Close the Digital and Economic Divide?

Briglauer¹,

Dürr

Falck

et al. 2016

SSRN Journal

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show abstract

“…Evidence suggests that the penetration of broadband increases the probability of employment and labour market participation; for instance, Crandall et al (2007) found that an increase of three million lines (i.e., a 1% increase in access to broadband) was associated with nearly 300,000 more jobs in the US economy. Using the Ordinary Least Squares estimation, Czernich (2014) found a negative association between availability of broadband via 3 DSL and unemployment rates in German municipalities, however, an instrument variable approach failed to establish any causal relationship.…”

Section: Introductionmentioning

confidence: 96%

“…In line with this argument, access to broadband can also be considered endogenous in the modelling of households' labour market status. Literature provides evidence of a statistically significant association between access to broadband and employment opportunities (Atasoy, 2013;Czernich, 2014). However, none of these studies show any causal relationship between these two variables, because in order to make causal inference, random selection of subjects and their random allocation to treatment and control groups are essential.…”

Section: Introductionmentioning

confidence: 99%

Access to broadband Internet and labour force outcomes: A case study of the Western Downs Region, Queensland

Alam

Mamun

2017

Telematics and Informatics

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This paper examines the causal effect of household access to broadband Internet on individuals' labour market outcomes in an Australian rural and regional context. This study uses the survey data of 391 households randomly selected from the Western Downs Region of Queensland, Australia, and employs the propensity score matching technique to make causal inferences. This study also controls selection bias issues -an aspect which has been overlooked in previous studies.This study found that the causal effect of household access to broadband Internet on individuals' labour force outcomes is not statistically significant. This finding can add value to our knowledge of the causal relationship between broadband access and labour force participation. As the rollout of a high-speed broadband network in rural and regional Australia is currently underway, the finding can be considered a benchmark for subsequent assessment of the effects of such infrastructure development on socio-economic outcomes.

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“…Low take-up rates imply that willingness of consumers to adopt and therefore migrate to the new broadband services is moderate on the demand side which also gives rise to substantial and costly over-capacities on the supply-side. Accordingly, the empirical studies employing measures of broadband investment (availability) only estimate a reduced form where the estimated coefficients represent a proportional effect on economic outcomes which is smaller than the effect via broadband adoption (Czernich, 2014). Whereas the former measures the intention-to-treat effect, the latter primarily impacts economic outcomes and is a function of broadband availability.…”

Section: An Augmented Production Functionmentioning

confidence: 99%

Go for Gigabit? First Evidence on Economic Benefits of (Ultra-)Fast Broadband Technologies in Europe

Briglauer¹,

Gugler²

2017

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. AbstractThe literature on the effects of telecommunications infrastructure investments find positive macroeconomic effects, however, it is severely constrained because it could hitherto only analyze investment up to "basic" broadband but not up to the newer generations of "fast" and "ultra-fast" broadband; in particular there is no such evidence available at the EU level so far.Utilizing a comprehensive panel dataset of EU27 member states for the period from 2003-2015,we estimate a small but significant effect of fiber-based ultra-fast broadband over and above the effects of basic broadband on GDP. Adoption of hybrid-fiber fast broadband is incrementally to basic broadband insignificant. Our cost-benefit analysis implies that policy intervention -as foreseen by the European Commission in its public policy targets -is only justified for coverage and adoption levels of around 50% of fast or ultra-fast broadband, whereas for 100% coverage levels we find net losses to society. Thus, it appears that -for the time being and according to the policy principle of "technological neutrality" -a combination of basic broadband, fast and ultra-fast broadband entails the largest economic net benefits to society.[1]

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Does broadband internet reduce the unemployment rate? Evidence for Germany

Cited by 76 publications

References 13 publications

Does State Aid for Broadband Deployment in Rural Areas Close the Digital and Economic Divide?

Does State Aid for Broadband Deployment in Rural Areas Close the Digital and Economic Divide?

Access to broadband Internet and labour force outcomes: A case study of the Western Downs Region, Queensland

Go for Gigabit? First Evidence on Economic Benefits of (Ultra-)Fast Broadband Technologies in Europe

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