Working Paper: NBER ID: w23582
Authors: Jonas Hjort; Jonas Poulsen
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.
Keywords: fast internet; employment; Africa; submarine cables; economic growth
JEL Codes: D20; J20; O10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| fast internet (L96) | employment rates (J68) |
| fast internet (L96) | employment in higher-skill occupations (J24) |
| fast internet (L96) | firm entry (M13) |
| fast internet (L96) | productivity (O49) |
| fast internet (L96) | exports (F10) |
| employment rates (J68) | average incomes (D31) |
| fast internet (L96) | employment inequality (J70) |