Alberto Chong () (Inter-American Development Bank) Virgilio Galdo (Inter-American Development Bank) Máximo Torero (International Food Policy Research Institute)
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This paper takes advantage of a quasi-natural experiment in Peru by which the privatized telecommunications company was required by government to randomly install and operate public pay phones in small rural towns throughout the national territory. Using a specially designed household survey for a representative sample of rural towns, it is possible to link access to telephone services with household income. It was found that, regardless of the income measurement, most characteristics of public telephone usage are positively linked with income. Remarkably, the benefits occur at both non-farm and farm income levels. Not only do the findings hold when using instrumental variables, but they are also further confirmed when using propensity scores matching methods.
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Paper provided by Inter-American Development Bank, Research Department in its series RES Working Papers with number
1043.
Find related papers by JEL classification: G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure H10 - Public Economics - - Structure and Scope of Government - - - General J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets O1 - Economic Development, Technological Change, and Growth - - Economic Development
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