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Mobile internet connectivity and household wealth in the Philippines

Author

Listed:
  • Wei, Zhiwu
  • Lee, Neil
  • Iddawela, Yohan

Abstract

Mobile internet has become a fundamental component of modern infrastructure. In this paper, we consider the impact of mobile internet connectivity on household wealth in the Philippines. We construct a granular measure of local mobile internet connectivity using comprehensive information on approximately 0.27 million geocoded cell towers, and identify causal impact through a novel instrumental variable based on proximity to submarine cable landing points. Our results suggest that mobile internet connectivity significantly increases household wealth, with effects that persist across education levels and are more pronounced in urban areas compared to rural ones. Combining individual survey datasets with Points-of-Interest data, we investigate mechanisms and demonstrate that improved connectivity stimulates activities in several key economic sectors that create employment opportunities. Additionally, mobile internet connectivity enhances individual educational outcomes and promotes female labor force participation, though predominantly in occasional or seasonal roles.

Suggested Citation

  • Wei, Zhiwu & Lee, Neil & Iddawela, Yohan, 2025. "Mobile internet connectivity and household wealth in the Philippines," LSE Research Online Documents on Economics 128856, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:128856
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    File URL: http://eprints.lse.ac.uk/128856/
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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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