Restrictions on Municipal Broadband Provision and Mothers’ Labor Market Outcomes: Evidence from the COVID-19 Pandemic

Saket S. Hegde and Jessica Van Parys

No 32257, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Prior to the COVID–19 pandemic, 17 states had legally restricted local governments from building their own broadband infrastructure and/or providing broadband internet to their communities. We use Federal Communications Commission (FCC) data to show that broadband subscribership grew slower in states with these restrictions compared to states without restrictions post-2020, particularly in counties with less affordable plans and fewer broadband providers. Then we examine how municipal restrictions affected the labor supply of married women with children following the sharp increase in telework after the pandemic. We employ the Current Population Survey (CPS) from 2018–2022 to estimate event studies and difference–in–differences models. Results show that mothers’ post-pandemic employment decreased by 4.7% in restriction states relative to non-restriction states; additionally, mothers in restriction states left the labor force and shifted to caregiving. Among mothers continuing to work, the share of time spent working from home decreased by 49%, while commute time increased 27%, in states with broadband restrictions versus states without. The results suggest that mothers were less likely to enter the workforce in states where remote work opportunities were limited by restrictions on broadband provision.

JEL-codes: J2 K2 L86 (search for similar items in EconPapers)
Date: 2024-03
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