The Arrival of Fast Internet and Employment in Africa
Type of Resource:
Journal
Year of Publication:
2019
Indicators:
- Enablers
- Challenges
- Outcomes and Impacts
- Trends
Themes:
- Digital Literacy And Skills
- Internet Governance
Author(s): Jonas Hjort and Jonas Poulsen
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.
URL
https://www.aeaweb.org/articles?id=10.1257/aer.20161385
Region of Study:
Africa,
Country of Study:
Africa,
Study Quality
High