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Wired and Hired: Employment Effects of Subsidized Broadband Internet for Low-Income Americans

Author

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  • George W. Zuo

Abstract

I present evidence on the relationship between broadband pricing and labor market outcomes for low-income individuals. Specifically, I estimate the effects of a Comcast service providing discounted broadband to qualifying low-income families. I use a triple differences strategy exploiting geographic variation in Comcast coverage, individual variation in eligibility, and temporal variation pre- and postlaunch. Local program availability increased employment rates and earnings of eligible individuals, driven by greater labor force participation and decreased probability of unemployment. Internet use increased substantially where the program was available.

Suggested Citation

  • George W. Zuo, 2021. "Wired and Hired: Employment Effects of Subsidized Broadband Internet for Low-Income Americans," American Economic Journal: Economic Policy, American Economic Association, vol. 13(3), pages 447-482, August.
    • Handle: RePEc:aea:aejpol:v:13:y:2021:i:3:p:447-82
    DOI: 10.1257/pol.20190648
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    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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