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How Broadband Internet Affects Labor Market Matching

Manudeep Bhuller (), Andreas Kostøl and Trond C. Vigtel

No 8022, CESifo Working Paper Series from CESifo

Abstract: How the internet affects job matching is not well understood due to a lack of data on job vacancies and quasi-experimental variation in internet use. This paper helps fill this gap using plausibly exogenous roll-out of broadband infrastructure in Norway, and comprehensive data on recruiters, vacancies and job seekers. We document that broadband expansions increased online vacancy-postings and lowered the average duration of a vacancy and the share of establishments with unfilled vacancies. These changes led to higher job-finding rates and starting wages and more stable employment relationships after an unemployment-spell. Consequently, our calculations suggest that the steady-state unemployment rate fell by as much as one-fifth.

Keywords: unemployment; information; job search; matching (search for similar items in EconPapers)
JEL-codes: D83 J63 J64 L86 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-eur, nep-ict and nep-ure
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Working Paper: How Broadband Internet Affects Labor Market Matching (2020) Downloads
Working Paper: How Broadband Internet Affects Labor Market Matching (2020) Downloads
Working Paper: How Broadband Internet Affects Labor Market Matching (2019) Downloads
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