The faster, the better? The impact of internet speed on employment

Bai, Yang

doi:10.1016/j.infoecopol.2017.06.004

Cited by 27 publications

(20 citation statements)

References 13 publications

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“…The authors control for the unemployment rate, state and period fixed effects and found that per capita GDP was about 1.1 per cent higher in states that have more than 50 per cent gigabit coverage. Bai (2017) is another recent study that examined the impact of different broadband speed levels using US county-level data for the years from 2011 to 2014. The study is closest to our approach as it employs data on speed levels, which act as a fairly reliable proxy for different basic broadband, hybrid fibre and end-to-end fibre technologies.…”

Section: Literature Reviewmentioning

confidence: 99%

Go for Gigabit? First Evidence on Economic Benefits of High‐speed Broadband Technologies in Europe

Briglauer

Gugler²

2019

J of Common Market Studies

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The literature on the effects of investment in broadband infrastructure finds positive macroeconomic effects. However, it is severely constrained because it could hitherto only analyse investment or adoption up to basic broadband, but not up to the newer generations of hybrid fibre and end-to-end fibre-based broadband. Utilizing a comprehensive panel dataset of EU27 member states for the period from 2003 to 2015, we estimate a small but significant effect of end-to-end fibrebased broadband adoption over and above the effects of basic broadband on GDP; specifically, we find that a 1 per cent increase in adoption leads to an incremental increase of 0.002-0.005 per cent in GDP. The incremental effect of hybrid fibre broadband adoption over basic broadband is slightly lower (0.002-0.003%). Our cost-benefit analysis implies that policy interventionas foreseen by the European Commissionis only justified for coverage and adoption levels of around 50 per cent, whereas for a 100 per cent coverage level net losses are likely.

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Section: Literature Reviewmentioning

confidence: 99%

Go for Gigabit? First Evidence on Economic Benefits of High‐speed Broadband Technologies in Europe

Briglauer

Gugler²

2019

J of Common Market Studies

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“…A number of studies have already provided some answers by examining broadband effects on various economic indicators, including economic growth, productivity, employment or unemployment, income, population, property values and, last but not least, firm location (see, among others, Atasoy, 2013;Bai, 2017;Briglauer & al., 2019;Czernich, 2014;De Stefano & al., 2014;Deller & Whitacre, Forthcoming;Forman & al., 2012;Guidry & al., 2012;Gurney, 2012;Ivus & Boland, 2015;Kandilov & Renkow, 2010;Kolko, 2012;Lapointe, 2015;Lehr & al., 2006;Mahasuweerachai & al., 2010;Mack & Rey, 2014;Mack & Wentz, 2017;Van Gaasbeck, 2008;Whitacre & al., 2014-a;2014-b). Among the investigated economic outcomes, firm location is of particular interest for at least two reasons.…”

Section: Introductionmentioning

confidence: 99%

Broadband and Firm Location: Some answers to relevant policy and research issues using meta-analysis

Duvivier

2021

cjrs

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We provide a quantitative literature review on broadband and firm location. While most previous works find that broadband has positive effects on firm location, the impact is very heterogeneous across studies. We examine the role of three categories of variables (context, methodological choices and publication characteristics) in explaining the variation in previous estimates. The results indicate that broadband effects are significantly more beneficial in urban areas, whereas lesser effects are found for finance, real estate and insurance. Methodological settings, and particularly the choice of the level of analysis, of control variables and of the econometric estimator, also play a significant role in explaining the differences in previous estimates. These results are then discussed to find some answers to relevant policy and research issues.

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“…Finally, Briglauer and Gugler (2018) employ EU27 panel data for the period 2003 to 2015. The authors identified, similar to Bai (2017), a significant but rather small effect of NGA broadband adoption over and above the effects of basic broadband on GDP.…”

Section: Technological Neutrality Market Uncertainties and Harmonization Goalsmentioning

confidence: 72%

“…Interestingly, they do neither find a significant (average) effect of NGA broadband adoption on employment nor on productivity (Fabling and Grimes, 2016, p. 4). In another study, Bai (2017) conducts an empirical study on the relationship between broadband (downstream data) rates and their impact on employment rates. More specifically, the author distinguishes between three broadband speed tiers (basic, fast, superfast) and assesses whether these have a differential impact on employment.…”

Section: Technological Neutrality Market Uncertainties and Harmonization Goalsmentioning

confidence: 99%

Public policy targets in EU broadband markets: The role of technological neutrality

Briglauer

Stocker

Whalley

2020

Telecommunications Policy

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The European Commission has recently sought to substantially revise how it regulates the telecommunication industry, with a key goal being to incentivise investment in high-speed broadband networks. Ambitious goals to incentivise investment in high-speed broadband networks have been set across the European Union, initially in the 'Digital Agenda for Europe' and more recently in its 'Gigabit strategy'. These goals reflect the view of many that there are widespread and significant socio-economic benefits associated with broadband. Our analysis explores the consequence of target setting at a European level, in terms of encouraging investment and picking which technology should be adopted within the context of technological neutrality. We demonstrate that while public policy targets might implicitly favour specific technologies, especially when gigabit targets are defined, the technological choices that occur within individual Member States are shaped by the complex and dynamic interaction between a series of path dependencies that may vary significantly across as well as within Member States. Adopting an ecosystem perspective, we propose a conceptual framework that identifies the key factors associated with technological neutrality and informs a rational decision-making process.

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The faster, the better? The impact of internet speed on employment

Cited by 27 publications

References 13 publications

Go for Gigabit? First Evidence on Economic Benefits of High‐speed Broadband Technologies in Europe

Go for Gigabit? First Evidence on Economic Benefits of High‐speed Broadband Technologies in Europe

Broadband and Firm Location: Some answers to relevant policy and research issues using meta-analysis

Public policy targets in EU broadband markets: The role of technological neutrality

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