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The impact of ultra-fast broadband on labor income: an event study approach

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  • Laura Abrardi
  • Carlo Cambini
  • Lorien Sabatino

Abstract

We investigate the impact of ultra-fast broadband connections on labor income and employment. We use panel data for Italian municipalities for the period 2012–2019 and we exploit the staggered roll-out of ultra-fast broadband started in 2015. Through an event study approach, we find evidence of endogeneity between ultra-fast broadband roll-out and labor market outcomes. To identify causal relationships, we use income from pensions to implement the estimator developed by [Freyaldenhoven, S., C. Hansen, and J. M. Shapiro. 2019. “Pre-Event Trends in the Panel Event-Study Design.” American Economic Review 109 (9): 3307–3338. https://doi.org/10.1257/aer.20180609.]. We find that access to ultra-fast broadband increases the income of the self-employed by 1.3% but has no impact on workers. Such an effect is mostly driven by a rise in self-employed workers, which is concentrated in urban areas, and in municipalities at the top and bottom quartiles of labor income.

Suggested Citation

  • Laura Abrardi & Carlo Cambini & Lorien Sabatino, 2024. "The impact of ultra-fast broadband on labor income: an event study approach," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 33(8), pages 1076-1095, November.
    • Handle: RePEc:taf:ecinnt:v:33:y:2024:i:8:p:1076-1095
    DOI: 10.1080/10438599.2023.2275211
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