Do Digital Information Technologies Help Unemployed Job Seekers Find a Job? Evidence from the Broadband Internet Expansion in Germany

62 Pages Posted: 13 Jun 2018

See all articles by Nicole Gürtzgen

Nicole Gürtzgen

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

André Diegmann

Centre for European Economic Research (ZEW); Halle Institute for Economic Research

Laura Pohlan

ZEW – Leibniz Centre for European Economic Research; Institute for Employment Research (IAB)

Gerard J. van den Berg

University of Groningen; VU University Amsterdam - Department of Economics; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; Tinbergen Institute

Date Written: 2018

Abstract

This paper studies effects of the introduction of a new digital mass medium on reemployment of unemployed job seekers. We combine data on high-speed (broadband) internet availability at the local level with individual register data on the unemployed in Germany. We address endogeneity by exploiting technological peculiarities in the network that affected the roll-out of high-speed internet. The results show that high-speed internet improves reemployment rates after the first months of the unemployment spell. This is confirmed by complementary analysis with individual survey data suggesting that online job search leads to additional formal job interviews after a few months in unemployment.

Keywords: Unemployment, online job search, information frictions, matching technology, search channels.

JEL Classification: J64, K42, H40, L96, C26.

Suggested Citation

Gürtzgen, Nicole and Diegmann, André and Diegmann, André and Pohlan, Laura and Pohlan, Laura and van den Berg, Gerard J., Do Digital Information Technologies Help Unemployed Job Seekers Find a Job? Evidence from the Broadband Internet Expansion in Germany (2018). ZEW - Centre for European Economic Research Discussion Paper No. 18-030, Available at SSRN: https://ssrn.com/abstract=3194424 or http://dx.doi.org/10.2139/ssrn.3194424

Nicole Gürtzgen (Contact Author)

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

André Diegmann

Halle Institute for Economic Research ( email )

P.O. Box 11 03 61
Kleine Maerkerstrasse 8
D-06017 Halle, 06108
Germany

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Laura Pohlan

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

ZEW – Leibniz Centre for European Economic Research ( email )

L 7,1
Mannheim, 68161
Germany

Gerard J. Van den Berg

University of Groningen ( email )

P.O. Box 800
9700 AH Groningen, Groningen 9700 AV
Netherlands

VU University Amsterdam - Department of Economics ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands
+31 20 444 6132 (Phone)
+32 20 444 6020 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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