[Measurement-wg] The Arrival of Fast Internet and Employment in Africa

[Amreesh Phokeer]

Interesting read from the AMERICAN ECONOMIC REVIEW

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 3 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.

<https://www.aeaweb.org/articles?id=10.1257/aer.20161385>

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Amreesh D. Phokeer
Research Manager, AFRINIC
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