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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 modern infrastructure. We consider how access influences household wealth in the Philippines using a granular measure of local connectivity based on geocoded cell towers and identify causal impact through an instrument based on proximity to submarine cable landing points. Our results show that mobile internet connectivity increases household wealth, with effects across education levels and most pronounced in urban areas. We investigate potential mechanisms and find that improved connectivity stimulates activity in key economic sectors, improves educational outcomes, and increases female labor force participation, primarily in occasional work. Given the context of the Philippines as a major migrant-sending country, we conduct a complementary event study which suggests that tower rollout may facilitate international labor migration and increase remittance flows to origin households.

Suggested Citation

  • Wei, Zhiwu & Lee, Neil & Iddawela, Yohan, 2027. "Mobile internet connectivity and household wealth in the Philippines," LSE Research Online Documents on Economics 140976, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:140976
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    File URL: https://researchonline.lse.ac.uk/id/eprint/140976/
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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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