Access to Telephone Services and Household Income in Poor Rural Areas Using a Quasi-Natural Experiment for Peru

26 Pages Posted: 8 Oct 2009

See all articles by Alberto Chong

Alberto Chong

University of Ottawa

Virgilio Galdo

Michigan State University - Economics

Maximo Torero

International Food Policy Research Institute (IFPRI); International Food Policy Research Institute (IFPRI)

Date Written: 2008-06-10

Abstract

We take advantage of a quasi-natural experiment in Peru in which a privatized telecommunications company was required by the government to randomly install and operate public pay phones in small rural towns throughout the country. Using an especially designed household survey for a representative sample of rural towns, we are able to link access to telephone services with household income. We find that, regardless of income measurement, most characteristics of public telephone use are positively linked with income. Remarkably, the benefits are given at both non-farm and farm income levels. The findings hold when using propensity score matching methods.

Suggested Citation

Chong, Alberto and Galdo, Virgilio and Torero, Maximo and Torero, Maximo, Access to Telephone Services and Household Income in Poor Rural Areas Using a Quasi-Natural Experiment for Peru (2008-06-10). Economica, Vol. 76, Issue 304, pp. 623-648, October 2009, Available at SSRN: https://ssrn.com/abstract=1484185 or http://dx.doi.org/10.1111/j.1468-0335.2008.00735.x

Alberto Chong (Contact Author)

University of Ottawa ( email )

2292 Edwin Crescent
Ottawa, Ontario K2C 1H7
Canada

Virgilio Galdo

Michigan State University - Economics ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States
517-203-8372 (Phone)

HOME PAGE: http://search.msu.edu/people/index.php?uid=488171&prev=Galdo,%20Virgilio

Maximo Torero

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

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