Mobile Broadband Internet, Poverty and Labor Outcomes in Tanzania

Kalvin Bahia, Pau Castells, Genaro Cruz (), Takaaki Masaki (), Carlos Rodriguez Castelan () and Viviane Sanfelice
Additional contact information
Kalvin Bahia: GSMA
Pau Castells: GSMA
Genaro Cruz: GSMA
Takaaki Masaki: World Bank
Carlos Rodriguez Castelan: World Bank
Authors registered in the RePEc Author Service: Carlos Rodríguez-Castelán

No 14720, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: What are the impacts of expanding mobile broadband coverage on poverty, household consumption and labor market outcomes in developing countries? Who benefits from improved coverage of mobile internet? To respond to these questions, this paper applies a difference-in-differences estimation using panel household survey data combined with geospatial information on the rollout of mobile broadband coverage in Tanzania. The results reveal that being covered by 3G networks has a large positive effect on total household consumption and poverty reduction, driven by positive impacts on labor market outcomes. Working age individuals living in areas covered by mobile internet witnessed an increase in labor force participation, wage employment, and non-farm self-employment, and a decline in farm employment. These effects vary by age, gender and skill level. Younger and more skilled men benefit the most through higher labor force participation and wage employment, while high-skilled women benefit from transitions from self-employed farm work into non-farm employment.

Keywords: labor force participation; consumption; Africa; welfare; Tanzania (search for similar items in EconPapers)
JEL-codes: F63 I31 L86 O12 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2021-09
New Economics Papers: this item is included in nep-afr, nep-dev, nep-ict and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published - published in: World Bank Economic Review, 2023, 37 (2), 235–256

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Working Paper: Mobile Broadband Internet, Poverty and Labor Outcomes in Tanzania (2021)
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