Mobile internet connectivity and household wealth in the Philippines

Zhiwu Wei, Neil Lee and Yohan Iddawela

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Mobile internet has become a fundamental component of modern infrastructure. In this paper, we consider the impact of mobile internet connectivity on household wealth in the Philippines. We construct a granular measure of local mobile internet connectivity using comprehensive information on approximately 0.27 million geocoded cell towers, and identify causal impact through a novel instrumental variable based on proximity to submarine cable landing points. Our results suggest that mobile internet connectivity significantly increases household wealth, with effects that persist across education levels and are more pronounced in urban areas compared to rural ones. Combining individual survey datasets with Points-of-Interest data, we investigate mechanisms and demonstrate that improved connectivity stimulates activities in several key economic sectors that create employment opportunities. Additionally, mobile internet connectivity enhances individual educational outcomes and promotes female labor force participation, though predominantly in occasional or seasonal roles.

Keywords: mobile internet; cell tower; wealth inequality; Philippines (search for similar items in EconPapers)
JEL-codes: F14 J24 J63 L86 O33 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2025-06
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:128871

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