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More Internet for More Employment and Earnings: A Causal Estimation for Costa Rica

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  • Boza-Núñez, Efraín
  • Vargas-Montoya, Luis
  • Robalino, Juan

Abstract

Information and communications Technologies (ICT) are crucial in people's daily activities, including the job-related ones. Previous literature has acknowledged the potential of ICT to enhance labor market outcomes. However, empirical evidence is scarce and concentrated in developed countries. By using a rich longitudinal dataset, we apply a novel Differences and Differences (DiD) method to estimate the effect of the access to computers and internet over the labor market participation, employment and earnings. We further test whether there are complementarity effects of having access to the internet and computers simultaneously on the labor market outcomes and the likely differential effect by having access to broadband instead of lower speed connections. We found that the access to computers and the internet positively affects labor market participation, employment and earning. We further found that the simultaneous access to the internet and computers enhances their effect on employment and earnings. Policy makers should be aware that, in the digital era, the access to ICT is crucial to enhance the labor market outcomes. Particularly for developing countries, which along with poorer labor markets outcomes face higher digital divides.

Suggested Citation

  • Boza-Núñez, Efraín & Vargas-Montoya, Luis & Robalino, Juan, 2023. "More Internet for More Employment and Earnings: A Causal Estimation for Costa Rica," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 278020, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itse23:278020
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    References listed on IDEAS

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    1. Bundervoet, Tom & Dávalos, Maria E. & Garcia, Natalia, 2022. "The short-term impacts of COVID-19 on households in developing countries: An overview based on a harmonized dataset of high-frequency surveys," World Development, Elsevier, vol. 153(C).
    2. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    3. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
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