Wired and Hired: Employment Effects of Subsidized Broadband Internet for Low-Income Americans

69 Pages Posted: 31 Oct 2019

See all articles by George Zuo

George Zuo

RAND Corporation

Daniel Kolliner

University of Maryland - College Park

Date Written: October 16, 2019

Abstract

We present evidence on the relationship between broadband pricing and labor market outcomes for low-income individuals. Specifically, we estimate the effects of a Comcast service providing discounted broadband to qualifying low-income families. We use a triple differences strategy exploiting geographic variation in Comcast coverage, individual variation in eligibility, and temporal variation pre- and post-launch. Program enrollment increases the probability that an eligible low-income individual is employed by 4.4 percentage points (7.8%), driven by greater labor force participation and decreased probability of unemployment. Internet use increased substantially where the program was available, narrowing the income-broadband gap by at least 40 percent.

Keywords: Employment, Poverty, Inequality, Technology

JEL Classification: J08, J68

Suggested Citation

Zuo, George and Kolliner, Daniel, Wired and Hired: Employment Effects of Subsidized Broadband Internet for Low-Income Americans (October 16, 2019). Available at SSRN: https://ssrn.com/abstract=3473784 or http://dx.doi.org/10.2139/ssrn.3473784

George Zuo (Contact Author)

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

Daniel Kolliner

University of Maryland - College Park ( email )

College Park, MD 20742
United States

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