Mobile Broadband Internet, Poverty and Labor Outcomes in Tanzania

52 Pages Posted: 11 Sep 2021 Last revised: 6 May 2025

See all articles by Kalvin Bahia

Kalvin Bahia

GSMA Intelligence

Pau Castells

GSMA Intelligence

Genaro Cruz

GSMA Intelligence

Takaaki Masaki

World Bank

Carlos Rodríguez-Castelán

World Bank

Viviane Sanfelice

University of Rochester

Abstract

What are the impacts of expanding mobile broadband coverage on poverty, household consumption and labor market outcomes in developing countries? Who benefits from improved coverage of mobile internet? To respond to these questions, this paper applies a difference-in-differences estimation using panel household survey data combined with geospatial information on the rollout of mobile broadband coverage in Tanzania. The results reveal that being covered by 3G networks has a large positive effect on total household consumption and poverty reduction, driven by positive impacts on labor market outcomes. Working age individuals living in areas covered by mobile internet witnessed an increase in labor force participation, wage employment, and non-farm self-employment, and a decline in farm employment. These effects vary by age, gender and skill level. Younger and more skilled men benefit the most through higher labor force participation and wage employment, while high-skilled women benefit from transitions from self-employed farm work into non-farm employment.

Keywords: labor force participation, consumption, Africa, welfare, Tanzania

JEL Classification: F63, I31, L86, O12

Suggested Citation

Bahia, Kalvin and Castells, Pau and Cruz, Genaro and Masaki, Takaaki and Rodriguez-Castelan, Carlos and Sanfelice, Viviane, Mobile Broadband Internet, Poverty and Labor Outcomes in Tanzania. IZA Discussion Paper No. 14720, Available at SSRN: https://ssrn.com/abstract=3921510

Kalvin Bahia (Contact Author)

GSMA Intelligence ( email )

United Kingdom

Pau Castells

GSMA Intelligence ( email )

United Kingdom

Genaro Cruz

GSMA Intelligence

United Kingdom

Takaaki Masaki

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Carlos Rodriguez-Castelan

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Viviane Sanfelice

University of Rochester ( email )

300 Crittenden Blvd.
Rochester, NY 14627
United States

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