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Access to Telephone Services and Household Income in Poor Rural Areas Using a Quasi-natural Experiment for Peru

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  • ALBERTO CHONG
  • VIRGILIO GALDO
  • MÁXIMO TORERO

Abstract

We take advantage of a quasi-natural experiment in Peru in which a privatized telecommunications company was required by the government to randomly install and operate public pay phones in small rural towns throughout the country. Using an especially designed household survey for a representative sample of rural towns, we are able to link access to telephone services with household income. We find that, regardless of income measurement, most characteristics of public telephone use are positively linked with income. Remarkably, the benefits are given at both non-farm and farm income levels. The findings hold when using propensity score matching methods. Copyright (c) The London School of Economics and Political Science 2008.

Suggested Citation

  • Alberto Chong & Virgilio Galdo & Máximo Torero, 2009. "Access to Telephone Services and Household Income in Poor Rural Areas Using a Quasi-natural Experiment for Peru," Economica, London School of Economics and Political Science, vol. 76(304), pages 623-648, October.
  • Handle: RePEc:bla:econom:v:76:y:2009:i:304:p:623-648
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    References listed on IDEAS

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    Cited by:

    1. Musafiri, Ildephonse & Mirzabaev, Alisher, 2014. "Long-Term Determinants of Agricultural Output in Smallholder Farmers in Rwanda," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169867, Agricultural and Applied Economics Association.
    2. Antonio Estache, 2010. "A survey of impact evaluations of infrastructure projects, programs and policies," Working Papers ECARES 2010_005, ULB -- Universite Libre de Bruxelles.
    3. Díaz-Bonilla, Eugenio, 2015. "Lost in translation: The fractured conversation about trade and food security:," IFPRI discussion papers 1490, International Food Policy Research Institute (IFPRI).
    4. Srinuan, Chalita, 2014. "Uncertainty of public pay phone in Thailand: Implications for the universal service obligation," Telecommunications Policy, Elsevier, vol. 38(8), pages 730-740.

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