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Surfing alone? The internet and social capital: Evidence from an unforeseeable technological mistake

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  • Bauernschuster, Stefan
  • Falck, Oliver
  • Woessmann, Ludger

Abstract

Does the Internet undermine social capital, such as real-world inter-personal relations and civic engagement? Merging unique telecommunication data with geo-coded German individual-level data, we investigate how broadband Internet affects social capital. A first identification strategy uses first-differencing to account for unobserved time-invariant individual heterogeneity. A second identification strategy exploits a quasi-experiment in East Germany created by a mistaken technology choice of the state-owned telecommunication provider in the 1990s that hindered broadband Internet roll-out for many households. We find no evidence of negative effects of the Internet on several aspects of social capital. In fact, the effect on a composite social capital index is significantly positive.

Suggested Citation

  • Bauernschuster, Stefan & Falck, Oliver & Woessmann, Ludger, 2014. "Surfing alone? The internet and social capital: Evidence from an unforeseeable technological mistake," Journal of Public Economics, Elsevier, vol. 117(C), pages 73-89.
  • Handle: RePEc:eee:pubeco:v:117:y:2014:i:c:p:73-89
    DOI: 10.1016/j.jpubeco.2014.05.007
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    More about this item

    Keywords

    Internet; Social capital;

    JEL classification:

    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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