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The Effect of Fast Internet on Employment: Evidence from a Large Broadband Expansion Program in China

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  • Qing Wang
  • Wenjing Xu
  • Yanghua Huang
  • Jidong Yang

Abstract

Information and communication technology plays an important role in human life and social production. The existing literature has mainly studied the economic impact of such technology in developed countries; the use of broadband in developing countries has been overlooked. This paper fills the gap by examining a broadband development program in China. Difference‐in‐difference estimates show that the deployment of high‐quality broadband promoted regional employment in the skilled service sector. The effect was larger in cities with a greater number of educated residents and cities in the west of China. We also found that broadband development stimulated firm creation and innovation. These findings imply that broadband promotes innovation and provides new impetus to the economic transition of emerging markets.

Suggested Citation

  • Qing Wang & Wenjing Xu & Yanghua Huang & Jidong Yang, 2022. "The Effect of Fast Internet on Employment: Evidence from a Large Broadband Expansion Program in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(3), pages 100-134, May.
    • Handle: RePEc:bla:chinae:v:30:y:2022:i:3:p:100-134
    DOI: 10.1111/cwe.12420
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    Cited by:

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    3. Qianqian Zhang & Apurv Maru & Chengji Yang & Hongdong Guo, 2024. "Can Internet Use Increase Rural Women’s Income? Evidence from Underdeveloped Areas of China," Sustainability, MDPI, vol. 16(23), pages 1-22, December.
    4. Xiumei Wang & Yongjian Huang & Yingying Zhao & Jingxuan Feng, 2023. "Digital Revolution and Employment Choice of Rural Labor Force: Evidence from the Perspective of Digital Skills," Agriculture, MDPI, vol. 13(6), pages 1-19, June.
    5. Wang, Chong & Wang, Lei, 2024. "Does broadband infrastructure promote urban innovation? Evidence from “Broadband China” demonstration policy," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 349-362.
    6. Ma, Shuang & Mu, Ren, 2025. "Digital Roots or Digital Routes? Broadband Expansion and the Rural-Urban Migration in China," IZA Discussion Papers 17752, Institute of Labor Economics (IZA).
    7. Hang Thu Nguyen-Phung & Miki Kohara & Secil Er, 2024. "The impact of ICT development on female employment and household’s well-being in Vietnam," The Japanese Economic Review, Springer, vol. 75(4), pages 951-978, December.
    8. Cao, Qingfeng & Ni, Pengfei & Guo, Jing, 2025. "Broadband internet and income inequality among the floating population: Evidence from the “broadband China” strategy in China," China Economic Review, Elsevier, vol. 90(C).
    9. Zhang, Cheng & Weng, Xiyan, 2024. "Can broadband infrastructure construction promote equality of opportunity? Evidence from a quasi-natural experiment in China☆," Journal of Asian Economics, Elsevier, vol. 93(C).
    10. Danyang Li & Daizo Kojima & Laping Wu & Mitsuyoshi Ando, 2024. "Impact of rural households' digital ability on their production efficiency in China," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 139-160, January.
    11. Danyang Li & Daizo Kojima & Laping Wu & Mitsuyoshi Ando, 2023. "Digital Ability and Livelihood Diversification in Rural China," Sustainability, MDPI, vol. 15(16), pages 1-14, August.
    12. Li, Xing & Yang, Gang & Shao, Tihang & Yang, Dan & Liu, Zimin, 2024. "Does digital infrastructure promote individual entrepreneurship? Evidence from a quasi-natural experiment on the “Broadband China” strategy," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    13. Yanlin Sun & Shaoxiong Ma & Hao Feng, 2023. "The New Geography of Manufacturing in China: The Internet and Manufacturing Agglomeration," Sustainability, MDPI, vol. 15(17), pages 1-21, August.
    14. Xiumei Wang & Ye Jiang & Famin Yi, 2024. "Digital Revolution and Job Quality of Lower Class Workers: Quasi‐experimental Evidence from the Broadband China Program," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 32(4), pages 146-178, July.

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