Broadband speed and unemployment rates: Data and measurement issues

Bento Lobo, Md Rafayet Alam and Brian Whitacre

Telecommunications Policy, 2020, vol. 44, issue 1

Abstract: We examine the effects of broadband speed on county unemployment rates in the U.S. state of Tennessee. We merge the older National Broadband Map dataset and the newer FCC dataset in lengthening our broadband access data over the period 2011–2015. Extending the dataset improves the precision of the estimates. Our panel regressions control for potential selection bias and reverse causality and show that broadband speed matters: unemployment rates are about 0.26 percentage points lower in counties with high speeds compared to counties with low speeds. Ultra-high speed broadband also appears to reduce unemployment rates; however, we are unable to distinguish between the effects of high and ultra-high speed broadband. We document beneficial effects of the early adoption of high speed broadband on unemployment rates. Better quality broadband appears to have a disproportionately greater effect in rural areas.

Keywords: Broadband speed; Unemployment rates; Selection bias; Endogeneity; Rural counties (search for similar items in EconPapers)
JEL-codes: C23 D12 E24 J64 O18 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

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DOI: 10.1016/j.telpol.2019.101829

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