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The Arrival of Fast Internet and Employment in Africa

Jonas Hjort and Jonas Poulsen

No 23582, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: To show how fast Internet affects employment in Africa, we exploit the gradual arrival of submarine Internet cables on the coast and maps of the terrestrial cable network. Robust difference-in-differences estimates from three datasets covering 12 countries show large positive effects on employment rates—also for less educated worker groups—with little or no job displacement across space. The sample-wide impact is driven by increased employment in higher-skill occupations, but less educated workers’ employment gain less so. Firm level data available for some countries indicate that increased firm entry, productivity, and exporting contribute to higher net job-creation. Average incomes rise.

JEL-codes: D20 J20 O10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr and nep-lma
Date: 2017-07
Note: DEV LS PR
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Published as Jonas Hjort & Jonas Poulsen, 2019. "The Arrival of Fast Internet and Employment in Africa," American Economic Review, vol 109(3), pages 1032-1079.

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