How Broadband Internet Affects Labor Market Matching

Manudeep Bhuller (), Andreas R. Kostøl () and Trond C. Vigtel ()
Additional contact information
Andreas R. Kostøl: Arizona State University
Trond C. Vigtel: University of Oslo
Authors registered in the RePEc Author Service: Andreas Ravndal Kostøl

No 2002, CReAM Discussion Paper Series from Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London

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: 2020-01
New Economics Papers: this item is included in nep-ict, nep-pay and nep-ure
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Related works:
Working Paper: How broadband internet affects labor market matching (2020)
Working Paper: How Broadband Internet Affects Labor Market Matching (2020)
Working Paper: How Broadband Internet Affects Labor Market Matching (2019)
Working Paper: How Broadband Internet Affects Labor Market Matching (2019)
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