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The Arrival of Fast Internet and Employment in Africa / Jonas Hjort, Jonas Poulsen.

By: Contributor(s): Material type: TextTextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w23582.Publication details: Cambridge, Mass. National Bureau of Economic Research 2017.Description: 1 online resource: illustrations (black and white)Subject(s): Online resources: Available additional physical forms:
  • Hardcopy version available to institutional subscribers
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 three 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.
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July 2017.

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 three 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.

Hardcopy version available to institutional subscribers

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