Telecommunications Dynamics, Output and Employment

Andre Jungmittag and Paul Welfens

No 2379, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In EU countries, opening up of telecommunications markets and regulations have helped to reduce the price of digital services which is an important quasi-input factor in all firms. Integrating the use of telecommunications in a macroeconomic production function is the analytical starting point for our interdependent analysis of output, use of telecommunications and employment. Based on unit root and co-integration analysis as well as an error correction three-equation model which are estimated simultaneously, we present results both on long run links and short run links between telecommunications, output and employment. Considering various scenarios suggests that a fall in the relative price of telecommunications can generate a cumulated employment increase of 760,000 within seven years in Germany. The institutional setup for regulating telecommunications could be improved in Germany and other EU countries.

Keywords: growth; employment; telecommunications; knowledge society; regulation (search for similar items in EconPapers)
JEL-codes: E0 L96 O0 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2006-10
New Economics Papers: this item is included in nep-ict and nep-mac
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Telecommunications dynamics, output and employment (2014)
Working Paper: Telecommunications Dynamics, Output and Employment (2013)
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