The Effect of Fibre Broadband on Student Learning

Abstract

We estimate the impact of ultra-fast broadband on schools' academic performance using a difference-indifference study of a new fibre broadband network. We show that fibre broadband increases primary schools' passing rates in standardised assessments by roughly one percentage point. Estimates are robust to alternative specifications, such as controlling for time-varying covariates. We find no evidence that gender, ethnic minorities or students enrolled in remote schools benefit disproportionately. However, we find some evidence of a larger benefit within schools that have a greater proportion of students from lower socioeconomic backgrounds.

Ultra-fast broadband, skill complementarities, gender and wages

“…While statistically significant, none of the effects is large: we find up to a 2% wage premium for suitably qualified males and a less than 1% wage reduction for unskilled females. These orders of magnitude are similar to the productivity gains found by Grimes and Townsend (2018) in relation to school achievement. The results point to fibre being a specific source of skill-biased technical change (Autor et al, 2003;Goos, 2018;Graetz and Michaels, 2018).…”

“…Overall, it appears that UFB is a complement to (at least male) workers with skills reflected either through STEM or through degree qualifications. The largest wage gains lie between 1% and 2%, which is a similar order of gain as found for productivity improvements in schools that adopt UFB (Grimes and Townsend, 2018), but smaller than the productivity effects found by Fabling & Grimes (2016) for firms that adopted UFB and also made complementary management investments.…”

“…In the education field, Grimes and Townsend (2018) found that UFB adoption in New Zealand led to statistically significant (albeit slight) improvements in academic outcomes for primary (elementary) aged school children across a range of subjects. That outcome can be considered an indicator of productivity improvement within schools arising from UFB adoption.…”