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The Arrival of Fast Internet and Employment in Africa.

Authors :
Hjort, Jonas
Poulsen, Jonas
Source :
American Economic Review; Mar2019, Vol. 109 Issue 3, p1032-1079, 48p, 11 Charts, 7 Graphs, 3 Maps
Publication Year :
2019

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. (JEL F14, J23, J24, J63, L86, O15, O33) [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
00028282
Volume :
109
Issue :
3
Database :
Complementary Index
Journal :
American Economic Review
Publication Type :
Academic Journal
Accession number :
134988896
Full Text :
https://doi.org/10.1257/aer.20161385