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Broadband Infrastructure and Unemployment - Evidence for Germany

Nina Czernich

Discussion Papers in Economics from University of Munich, Department of Economics

Abstract: Online job search is becoming increasingly prominent and is viewed to improve the efficiency of the search process. OLS results suggest a negative association of DSL availability with unemployment rates across German municipalities. However, the roll-out of DSL networks is not random. This paper exploits the fact that the availability of DSL connections depends on a municipality’s distance to the closest interconnection point to the pre-existing voice-telephony network. Instrumental-variable results using this distance as an instrument for DSL availability do not confirm the effect of DSL availability on unemployment.

Keywords: Unemployment; job search; broadband internet (search for similar items in EconPapers)
JEL-codes: J64 L96 (search for similar items in EconPapers)
Date: 2011-06
New Economics Papers: this item is included in nep-geo, nep-ict and nep-lab
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