Journal
AMERICAN ECONOMIC REVIEW
Volume 109, Issue 3, Pages 1032-1079Publisher
AMER ECONOMIC ASSOC
DOI: 10.1257/aer.20161385
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Funding
- Center for Development Economics and Policy at Columbia University
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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.
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