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Ultra-fast broadband, skill complementarities, gender and wages

Author

Listed:
  • Richard Fabling

    (Independent researcher)

  • Arthur Grimes

    (Motu Economic and Public Policy Research)

Abstract

We examine whether ultra-fast broadband (UFB) has selective complementarities with certain types of labour. Using longitudinal data on New Zealand firms’ internet connection type (UFB versus other forms of broadband) we find that, following UFB adoption by a firm, the wages of certain skilled incumbent employees rise. This is particularly so for males with STEM qualifications, plus males with university level qualifications (and possibly Masters level female graduates) without STEM qualifications. Wages of male employees without qualifications and of female employees with both lower level and no qualifications tend to fall relative to those in firms that do not adopt UFB. These results are consistent with the existence of skill-biased technical change. More puzzling is why these skill-biased changes have differential effects for incumbent male versus female workers.

Suggested Citation

  • Richard Fabling & Arthur Grimes, 2019. "Ultra-fast broadband, skill complementarities, gender and wages," Working Papers 19_23, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:19_23
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    References listed on IDEAS

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    8. Isabelle Sin & Steven Stillman & Richard Fabling, 2017. "What drives the gender wage gap? Examining the roles of sorting, productivity differences, and discrimination," Working Papers 17_15, Motu Economic and Public Policy Research.
    9. Arthur Grimes & Cleo Ren & Philip Stevens, 2012. "The need for speed: impacts of internet connectivity on firm productivity," Journal of Productivity Analysis, Springer, vol. 37(2), pages 187-201, April.
    10. Richard Fabling, 2009. "A Rough Guide to New Zealand's Longitudinal Business Database," Global COE Hi-Stat Discussion Paper Series gd09-103, Institute of Economic Research, Hitotsubashi University.
    11. Richard Fabling, 2011. "Keeping it Together: Tracking Firms on New Zealand’s Longitudinal Business Database," Working Papers 11_01, Motu Economic and Public Policy Research.
    12. Fabling, Richard & Grimes, Arthur, 2021. "Picking up speed: Does ultrafast broadband increase firm productivity?," Information Economics and Policy, Elsevier, vol. 57(C).
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    14. Richard Fabling & Lynda Sanderson, 2016. "A Rough Guide to New Zealand's Longitudinal Business Database (2nd edition)," Working Papers 16_03, Motu Economic and Public Policy Research.
    15. Richard Fabling & Arthur Grimes & David C. Maré, 2012. "Performance Pay Systems and the Gender Wage Gap," Working Papers 12_13, Motu Economic and Public Policy Research.
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    More about this item

    Keywords

    Broadband; ultra-fast; wages; skill-biased technical change; gender wage gap;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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