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The behavioral impact of 5G adoption: Evidence from individual-level transaction data

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  • Lee, Joseph
  • Ahn, Jae-Hyeon
  • Myeong, Jaeho

Abstract

The rollout of 5G mobile technology has been anticipated to play a pivotal role in digital transformation, yet rigorous empirical evidence on its behavioral effects remains limited. This study addresses that gap by analyzing individual-level transaction data from South Korea covering October 2018 to December 2019. Employing a difference-in-differences approach with coarsened exact matching, we estimate the causal impact of 5G adoption on consumption patterns across digital and non-digital domains. Results show that 5G adoption increases in the frequency, spending amount, share, and diversity of digital transactions, while non-digital transactions remain unchanged. These effects are particularly strong in non-metropolitan regions, where improvements in network performance trigger larger behavioral responses. Within these regions, younger users and women show especially pronounced increases in digital engagement, while income-related differences are not statistically significant. By providing individual-level evidence on how advanced mobile infrastructure influences real-world consumption behavior, this study contributes to the literature on digital behavior, infrastructure inequality, and the digitalization paradox, with implications for business strategy and public policy.

Suggested Citation

  • Lee, Joseph & Ahn, Jae-Hyeon & Myeong, Jaeho, 2026. "The behavioral impact of 5G adoption: Evidence from individual-level transaction data," Telecommunications Policy, Elsevier, vol. 50(2).
    • Handle: RePEc:eee:telpol:v:50:y:2026:i:2:s0308596125002095
    DOI: 10.1016/j.telpol.2025.103112
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