The Arrival of Fast Internet and Employment in Africa
- (pp. 1032-79)
(Complimentary)
Abstract
To show how fast Internet affects employment in Africa, we exploit the gradual arrival of submarine Internet cables on the coast and maps of the terrestrial cable network. Robust difference-in-differences estimates from 3 datasets, covering 12 countries, show large positive effects on employment rates—also for less educated worker groups—with little or no job displacement across space. The sample-wide impact is driven by increased employment in higher-skill occupations, but less-educated workers' employment gain less so. Firm-level data available for some countries indicate that increased firm entry, productivity, and exporting contribute to higher net job creation. Average incomes rise.Citation
Hjort, Jonas, and Jonas Poulsen. 2019. "The Arrival of Fast Internet and Employment in Africa." American Economic Review, 109 (3): 1032-79. DOI: 10.1257/aer.20161385Additional Materials
JEL Classification
- F14 Empirical Studies of Trade
- J23 Labor Demand
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J63 Labor Turnover; Vacancies; Layoffs
- L86 Information and Internet Services; Computer Software
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O33 Technological Change: Choices and Consequences; Diffusion Processes