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Mobile Broadband, Poverty, and Labor Outcomes in Tanzania

Author

Listed:
  • Kalvin Bahia
  • Pau Castells
  • Genaro Cruz
  • Takaaki Masaki
  • Carlos Rodríguez-Castelán
  • Viviane Sanfelice

Abstract

What are the impacts of expanding mobile broadband coverage on poverty, household consumption, and labor-market outcomes in developing countries? Who benefits from improved coverage of mobile internet? To respond to these questions, this paper applies a difference-in-differences estimation using panel household survey data combined with geospatial information on the rollout of mobile broadband coverage in Tanzania. The results reveal that being covered by 3G networks has a large positive effect on total household consumption and poverty reduction, driven by positive impacts on labor-market outcomes. Working-age individuals living in areas covered by mobile internet witnessed an increase in labor-force participation, wage employment, and non-farm self-employment, and a decline in farm employment. These effects vary by age, gender, and skill level. Younger and more skilled men benefit the most through higher labor-force participation and wage employment, while high-skilled women benefit from transitions from self-employed farm work into non-farm employment.

Suggested Citation

  • Kalvin Bahia & Pau Castells & Genaro Cruz & Takaaki Masaki & Carlos Rodríguez-Castelán & Viviane Sanfelice, 2023. "Mobile Broadband, Poverty, and Labor Outcomes in Tanzania," The World Bank Economic Review, World Bank, vol. 37(2), pages 235-256.
    • Handle: RePEc:oup:wbecrv:v:37:y:2023:i:2:p:235-256.
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    File URL: http://hdl.handle.net/10.1093/wber/lhad003
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    Cited by:

    1. Nyanzu, Frederick & Baylis, Kathy, 2023. "Mobile Money Service, Financial Inclusion, and Ag-Investment in Developing Countries: Evidence from Ghana," 2023 Annual Meeting, July 23-25, Washington D.C. 335719, Agricultural and Applied Economics Association.

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