The Arrival of Fast Internet and Employment in Africa

Jonas Hjort and Jonas Poulsen

American Economic Review, 2019, vol. 109, issue 3, 1032-79

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 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.

JEL-codes: F14 J23 J24 J63 L86 O15 O33 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/aer.20161385
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Citations: View citations in EconPapers (207)

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