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Broadband Access, Telecommuting and the Urban-Rural Digital Divide

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Author Info
Song, Moohoun
Orazem, Peter
Singh, Rajesh

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Abstract

We investigate the role of broadband access on the probability of telecommuting and whether individuals who work from home receive greater compensation. We also assess whether telecommuting differs between more- and less-densely populated areas. Telecommuting responds positively to local average commuting time and to local access to High-Speed Internet service. Differences in broadband access explain three-fourths of the gap in telecommuting between urban and rural markets. Telecommuters and other IT users do not earn significantly more than otherwise observationally comparable workers. Already highly skilled and highly paid workers are the most likely to telecommute and so they do not earn more because they telecommute. As broadband access improves in rural markets, the urban-rural gap in telecommuting will diminish. The urban-rural pay gap will also decrease if improved broadband access induces some already highly paid urban workers to move to rural areas.

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Publisher Info
Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12495.

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Length: 30 pages
Date of creation: 02 Feb 2006
Date of revision:
Handle: RePEc:isu:genres:12495

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Related research
Keywords: Broadband; Telecommuting; Commuting; Earnings; Urban; Rural;

Find related papers by JEL classification:
O3 - Economic Development, Technological Change, and Growth - - Technological Change

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gabe, Todd M & Abel, Jaison R, 2002. " Deployment of Advanced Telecommunications Infrastructure in Rural America: Measuring the Digital Divide," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 84(5), pages 1246-52. [Downloadable!] (restricted)
  2. P L Mokhtarian & I Salomon, 1996. "Modeling the choice of telecommuting: 3. Identifying the choice set and estimating binary choice models for technology-based alternatives," Environment and Planning A, Pion Ltd, London, vol. 28(10), pages 1877-1894, October. [Downloadable!] (restricted)
    Other versions:
  3. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  4. Entorf, Horst & Gollac, Michel & Kramarz, Francis, 1999. "New Technologies, Wages, and Worker Selection," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 464-91, July. [Downloadable!] (restricted)
    Other versions:
  5. Patricia Mokhtarian & Ilan Salomon & Sangho Choo, 2005. "Measuring the Measurable: Why Can't We Agree on the Number of Telecommuters in the U.S.?," Labor and Demography 0508011, EconWPA. [Downloadable!]
  6. Liu, Jin-Tan & Tsou, Meng-Wen & Hammitt, James K., 2004. "Computer use and wages: evidence from Taiwan," Economics Letters, Elsevier, vol. 82(1), pages 43-51, January. [Downloadable!] (restricted)
  7. Litan, Robert & Rivlin, Alice, 2001. "Projecting the economic impact of the Internet," Journal of Financial Transformation, Capco Institute, vol. 2, pages 35-41.
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  8. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June. [Downloadable!]
  9. Dale W. Jorgenson, 2001. "Information Technology and the U. S. Economy," Harvard Institute of Economic Research Working Papers 1911, Harvard - Institute of Economic Research. [Downloadable!]
  10. Lee, Sang-Hyop & Kim, Jonghyuk, 2004. "Has the Internet changed the wage structure too?," Labour Economics, Elsevier, vol. 11(1), pages 119-127, February. [Downloadable!] (restricted)
  11. Harry A. Krashinsky, 2004. "Do Marital Status and Computer Usage Really Change the Wage Structure?," Journal of Human Resources, University of Wisconsin Press, vol. 39(3). [Downloadable!] (restricted)
  12. repec:bep:eapcon:v:3:y:2004:i:1:p:1263-1263 is not listed on IDEAS
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