Effect of Residential Broadband Internet Diffusion on Industry Composition: Evidence from Japan

62 Pages Posted: 6 Jul 2022

Date Written: June 22, 2022

Abstract

In this paper, we estimate the effect of broadband internet roll-out in Japan on industrial structure through its impact on labor force participation and wages by industry. Using the instrumental variable method, which focuses on regional differences in the geographic characteristics that constrain broadband internet supply, we find that the diffusion of broadband internet increased the probability of labor force participation and wages, particularly in the wholesale and service industries. Possible reasons for this include the spread of online shopping, telework, and the potential for improved job match quality.

Keywords: Broadband Internet, Labor Supply, Wages, Online Shopping, Telework

JEL Classification: J20, J21, J22

Suggested Citation

Muroga, Kiho, Effect of Residential Broadband Internet Diffusion on Industry Composition: Evidence from Japan (June 22, 2022). Available at SSRN: https://ssrn.com/abstract=3934789 or http://dx.doi.org/10.2139/ssrn.3934789

Kiho Muroga (Contact Author)

Kyushu University ( email )

6-19-1, Hakozaki, Higashiku
Fukuoka, Fukuoka 812-8581
Japan

HOME PAGE: http://www.kihomuroga.com

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