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Do digital information technologies help unemployed job seekers find a job? Evidence from the broadband internet expansion in Germany

Author

Listed:
  • Gürtzgen, Nicole

    (Institute for Employment Research)

  • Diegmann (né Nolte), André

    (Centre for European Economic Research (ZEW) and Institute for Employment Research (IAB))

  • Pohlan, Laura

    (Centre for European Economic Research (ZEW) and Institute for Employment Research (IAB))

  • van den Berg, Gerard J.

    (University of Bristol, IFAU Uppsala, IZA, ZEW, CEPR and CESifo)

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 German individual register data. We address endogeneity by exploiting technological peculiarities that affected the roll-out of high-speed internet. The results show that highspeed internet improves reemployment rates after the first months in unemployment. This is confirmed by complementary analyses with individual survey data suggesting that internet access increases online job search and the number of job interviews after a fewmonths in unemployment.

Suggested Citation

  • Gürtzgen, Nicole & Diegmann (né Nolte), André & Pohlan, Laura & van den Berg, Gerard J., 2018. "Do digital information technologies help unemployed job seekers find a job? Evidence from the broadband internet expansion in Germany," Working Paper Series 2018:21, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2018_021
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    Cited by:

    1. Manudeep Bhuller & Andreas R. Kostol & Trond C. Vigtel, 2019. "How Broadband Internet Affects Labor Market Matching," CESifo Working Paper Series 8022, CESifo.
    2. Denzer, Manuel & Schank, Thorsten & Upward, Richard, 2018. "Does the Internet Increase the Job Finding Rate? Evidence from a Period of Internet Expansion," IZA Discussion Papers 11764, Institute of Labor Economics (IZA).
    3. Gürtzgen, Nicole & Lochner, Benjamin & Pohlan, Laura & van den Berg, Gerard J., 2021. "Does online search improve the match quality of new hires?," Labour Economics, Elsevier, vol. 70(C).
    4. Jin, Xin & Ma, Baojie & Zhang, Haifeng, 2023. "Impact of fast internet access on employment: Evidence from a broadband expansion in China," China Economic Review, Elsevier, vol. 81(C).
    5. Diegmann, André, 2019. "The internet effects on sex crime offenses - Evidence from the German broadband internet expansion," Journal of Economic Behavior & Organization, Elsevier, vol. 165(C), pages 82-99.
    6. Qiong Xu & Xin Li & Fei Guo, 2023. "Digital transformation and environmental performance: Evidence from Chinese resource‐based enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1816-1840, July.
    7. Wang, Yi & Niu, Geng & Zhou, Yang & Lu, Weijie, 2023. "Broadband internet and stock market participation," International Review of Financial Analysis, Elsevier, vol. 85(C).
    8. Piotr Denderski & Florian Sniekers, 2024. "Declining Search Frictions, Unemployment and Self-Employment," The Economic Journal, Royal Economic Society, vol. 134(659), pages 1100-1145.
    9. Guglielmo Briscese & Giulio Zanella & Veronica Quinn, 2022. "Providing Government Assistance Online: A Field Experiment with the Unemployed," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(2), pages 579-602, March.
    10. McDool, Emily & Powell, Philip & Roberts, Jennifer & Taylor, Karl, 2020. "The internet and children’s psychological wellbeing," Journal of Health Economics, Elsevier, vol. 69(C).
    11. Johannes Moser & Fabian Wenner & Alain Thierstein, 2022. "Working From Home and Covid-19: Where Could Residents Move to?," Urban Planning, Cogitatio Press, vol. 7(3), pages 15-34.
    12. Zhao, Xiaoxia & Cai, Lianghui, 2023. "Digital transformation and corporate ESG: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PA).
    13. Denzer, Manuel, 2018. "Does the internet increase the job finding rate? Evidence from a period of internet expansion," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181557, Verein für Socialpolitik / German Economic Association.
    14. Choi, Eleanor Jawon, 2023. "Does the internet help the unemployed find jobs?," Information Economics and Policy, Elsevier, vol. 62(C).
    15. Briscese, Guglielmo & Zanella, Giulio & Quinn, Veronica, 2020. "Improving Job Search Skills: A Field Experiment on Online Employment Assistance," IZA Discussion Papers 13170, Institute of Labor Economics (IZA).
    16. Liu, Na & Xu, Qinqiao & Gao, Meng, 2024. "Digital transformation and tourism listed firm performance in COVID-19 shock," Finance Research Letters, Elsevier, vol. 63(C).
    17. Sabatini, Fabio, 2023. "The Behavioral, Economic, and Political Impact of the Internet and Social Media: Empirical Challenges and Approaches," IZA Discussion Papers 16703, Institute of Labor Economics (IZA).
    18. Denzer, Manuel & Schank, Thorsten & Upward, Richard, 2021. "Does the internet increase the job finding rate? Evidence from a period of expansion in internet use," Information Economics and Policy, Elsevier, vol. 55(C).

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    More about this item

    Keywords

    Unemployment; online job search; information frictions; matching technology; search channels;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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