Abstract

http://ssrn.com/abstract=2032097
 


 



Spillovers Effects of Wiring Schools with Broadband: The Critical Role of Children


Rodrigo Belo


Carnegie Mellon University - H. John Heinz III College; CATÓLICA-LISBON School of Business and Economics

Pedro Ferreira


Carnegie Mellon University - H. John Heinz III School of Public Policy and Management; Carnegie Mellon University - Department of Engineering and Public Policy

Rahul Telang


Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

December 7, 2013


Abstract:     
Providing broadband to schools can be an effective way to foster household Internet adoption in neighboring areas. On the one hand, the infrastructure put into place to meet schools' needs can also be used to serve households. On the other hand, students get acquainted with Internet at school and signal its usefulness to adults at home who can, as a consequence, be more likely to adopt it. In this paper we model the roles that broadband use at school and broadband adoption in neighboring households play in the decision to adopt broadband at home and measure their effects empirically. We use data from Portugal between 2008 and 2009 on household broadband penetration and on how much schools use broadband. We use fixed effects and two different sets of instruments for the schools' broadband use to alleviate endogeneity concerns. Both approaches yield similar results which increases our confidence in our findings. We find that broadband use at school leads to higher levels of broadband penetration in neighboring households, in particular in households with children. The average broadband use in schools across our dataset increased the probability of broadband adoption by 20% in households with children, while no statistically significant effect is found in households without children. These results show that wiring schools with broadband is an effective policy to lower the barriers for Internet adoption at home and as such contributes to accelerate the pace of broadband diffusion.

Number of Pages in PDF File: 55

Keywords: knowledge spillovers, broadband

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Date posted: April 2, 2012 ; Last revised: December 21, 2013

Suggested Citation

Belo, Rodrigo and Ferreira, Pedro and Telang, Rahul, Spillovers Effects of Wiring Schools with Broadband: The Critical Role of Children (December 7, 2013). Available at SSRN: http://ssrn.com/abstract=2032097 or http://dx.doi.org/10.2139/ssrn.2032097

Contact Information

Rodrigo Belo (Contact Author)
Carnegie Mellon University - H. John Heinz III College ( email )
Pittsburgh, PA 15213-3890
United States
HOME PAGE: http://www.andrew.cmu.edu/user/rbelo/
CATÓLICA-LISBON School of Business and Economics ( email )
Palma de Cima
Lisboa, 1649-023
Portugal
Pedro Ferreira
Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )
Pittsburgh, PA 15213-3890
United States
Carnegie Mellon University - Department of Engineering and Public Policy ( email )
Baker Hall 129
5000 Forbes Ave
Pittsburgh, PA 15213
United States
Rahul Telang
Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )
4800 Forbes Ave
Pittsburgh, PA 15213-3890
United States
412-268-1155 (Phone)
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