IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp11764.html
   My bibliography  Save this paper

Does the Internet Increase the Job Finding Rate? Evidence from a Period of Internet Expansion

Author

Listed:
  • Denzer, Manuel

    (University of Mainz)

  • Schank, Thorsten

    (University of Mainz)

  • Upward, Richard

    (University of Nottingham)

Abstract

We examine the impact of household access to the internet on job finding rates in Germany during a period (2006-2009) in which internet access increased rapidly, and job-seekers increased their use of the internet as a search tool. During this period, household access to the internet was almost completely dependent on connection to a particular technology (DSL). We therefore exploit the variation in connection rates across municipalities as an instrument for household access to the internet. OLS estimates which control for differences in individual and local area characteristics suggest a job-finding advantage of about five percentage points. The IV estimates are substantially larger, but much less precisely estimated. However, we cannot reject the hypothesis that, conditional on observables, residential computer access with internet was as good as randomly assigned with respect to the job-finding rate. The hypothesis that residential internet access helped job-seekers find work because of its effect on the job search process is supported by the finding that residential internet access greatly increased the use of the internet as a search method. We find some evidence that household access to the internet reduced the use of traditional job search methods, but this effect is outweighed by the increase in internet-based search methods.

Suggested Citation

  • Denzer, Manuel & Schank, Thorsten & Upward, Richard, 2018. "Does the Internet Increase the Job Finding Rate? Evidence from a Period of Internet Expansion," IZA Discussion Papers 11764, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11764
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp11764.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Oliver Falck & Robert Gold & Stephan Heblich, 2014. "E-lections: Voting Behavior and the Internet," American Economic Review, American Economic Association, vol. 104(7), pages 2238-2265, July.
    2. Gürtzgen, Nicole & (né Nolte), André Diegmann & Pohlan, Laura & van den Berg, Gerard J., 2021. "Do digital information technologies help unemployed job seekers find a job? Evidence from the broadband internet expansion in Germany," European Economic Review, Elsevier, vol. 132(C).
    3. Lisa J. Dettling, 2013. "Broadband in the labor market: The impact of residential high speed internet on married women's labor force participation," Finance and Economics Discussion Series 2013-65, Board of Governors of the Federal Reserve System (U.S.).
    4. Trappmann, Mark & Beste, Jonas & Bethmann, Arne & Müller, Gerrit, 2013. "The PASS panel survey after six waves," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(4), pages 275-281.
    5. Kory Kroft & Devin G. Pope, 2014. "Does Online Search Crowd Out Traditional Search and Improve Matching Efficiency? Evidence from Craigslist," Journal of Labor Economics, University of Chicago Press, vol. 32(2), pages 259-303.
    6. Robert E. Hall & Sam Schulhofer-Wohl, 2018. "Measuring Job-Finding Rates and Matching Efficiency with Heterogeneous Job-Seekers," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(1), pages 1-32, January.
    7. Peter Kuhn & Hani Mansour, 2014. "Is Internet Job Search Still Ineffective?," Economic Journal, Royal Economic Society, vol. 124(581), pages 1213-1233, December.
    8. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
    9. Mark Trappman & Stefanie Gundert & Claudia Wenzig & Daniel Gebhardt, 2010. "PASS – A Household Panel Survey for Research on Unemployment and Poverty," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 130(4), pages 609-622.
    10. Peter Kuhn & Mikal Skuterud, 2004. "Internet Job Search and Unemployment Durations," American Economic Review, American Economic Association, vol. 94(1), pages 218-232, March.
    11. Nadine Fabritz, 2013. "The Impact of Broadband on Economic Activity in Rural Areas: Evidence from German Municipalities," ifo Working Paper Series 166, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    12. Czernich, Nina, 2014. "Does broadband internet reduce the unemployment rate? Evidence for Germany," Information Economics and Policy, Elsevier, vol. 29(C), pages 32-45.
    13. Mark Trappmann & Jonas Beste & Arne Bethmann & Gerrit Müller, 2013. "The PASS panel survey after six waves [Die PASS-Panelbefragung nach sechs Wellen]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 46(4), pages 275-281, December.
    14. Promberger, Markus & Achatz, Juliane & Hirseland, Andreas & Schnell, Rainer & Rudolph, Helmut & Trappmann, Mark & Wenzel, Ulrich & Promberger, Markus, 2007. "Neue Daten für die Sozialstaatsforschung : zur Konzeption der IAB-Panelerhebung "Arbeitsmarkt und Soziale Sicherung"," IAB-Forschungsbericht 200712, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. David H. Autor, 2001. "Wiring the Labor Market," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 25-40, Winter.
    16. Constantin Mang, 2012. "Online Job Search and Matching Quality," ifo Working Paper Series 147, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    17. Betsey Stevenson, 2009. "The Internet and Job Search," NBER Chapters, in: Studies of Labor Market Intermediation, pages 67-86, National Bureau of Economic Research, Inc.
    18. Stephan L. Thomsen & Mark Wittich, 2010. "Which one to Choose? Evidence on the Choice and Success of Job Search Methods," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 130(4), pages 445-483.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bhuller, Manudeep & Kostøl, Andreas & Vigtel, Trond Christian, 2019. "How Broadband Internet Affects Labor Market Matching," Memorandum 10/2019, Oslo University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Denzer, Manuel & Schank, Thorsten & Upward, Richard, 2021. "Does the internet increase the job finding rate? Evidence from a period of expansion in internet use," Information Economics and Policy, Elsevier, vol. 55(C).
    2. Denzer, Manuel, 2018. "Does the internet increase the job finding rate? Evidence from a period of internet expansion," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181557, Verein für Socialpolitik / German Economic Association.
    3. Gürtzgen, Nicole & (né Nolte), André Diegmann & Pohlan, Laura & van den Berg, Gerard J., 2021. "Do digital information technologies help unemployed job seekers find a job? Evidence from the broadband internet expansion in Germany," European Economic Review, Elsevier, vol. 132(C).
    4. Czernich, Nina, 2014. "Does broadband internet reduce the unemployment rate? Evidence for Germany," Information Economics and Policy, Elsevier, vol. 29(C), pages 32-45.
    5. Gürtzgen, Nicole & Lochner, Benjamin & Pohlan, Laura & van den Berg, Gerard J., 2021. "Does online search improve the match quality of new hires?," Labour Economics, Elsevier, vol. 70(C).
    6. Bastian Stockinger, 2019. "Broadband internet availability and establishments’ employment growth in Germany: evidence from instrumental variables estimations," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-23, December.
    7. Bhuller, Manudeep & Kostøl, Andreas & Vigtel, Trond Christian, 2019. "How Broadband Internet Affects Labor Market Matching," Memorandum 10/2019, Oslo University, Department of Economics.
    8. Stockinger, Bastian, 2017. "The effect of broadband internet on establishments' employment growth: evidence from Germany," IAB-Discussion Paper 201719, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Rainer Eppel & Helmut Mahringer & Andrea Weber, 2014. "Job Search Behaviour and Job Search Success of the Unemployed," WIFO Working Papers 471, WIFO.
    10. Leonardo Fabio Morales & Carlos Ospino & Nicole Amaral, 2021. "Online Vacancies and its Role in Labor Market Performance," Borradores de Economia 1174, Banco de la Republica de Colombia.
    11. R. Jason Faberman & Marianna Kudlyak, 2019. "The Intensity of Job Search and Search Duration," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(3), pages 327-357, July.
    12. repec:iab:iabfda:201307(en is not listed on IDEAS
    13. Briglauer, Wolfgang & Dürr, Niklas S. & Falck, Oliver & Hüschelrath, Kai, 2019. "Does state aid for broadband deployment in rural areas close the digital and economic divide?," Information Economics and Policy, Elsevier, vol. 46(C), pages 68-85.
    14. Ana Dammert & Jose Galdo & Virgilio Galdo, 2015. "Integrating mobile phone technologies into labor-market intermediation: a multi-treatment experimental design," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-27, December.
    15. Eckhardt Bode & Stephan Brunow & Ingrid Ott & Alina Sorgner, 2019. "Worker Personality: Another Skill Bias beyond Education in the Digital Age," German Economic Review, Verein für Socialpolitik, vol. 20(4), pages 254-294, November.
    16. Andriana Bellou, 2015. "The impact of Internet diffusion on marriage rates: evidence from the broadband market," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 265-297, April.
    17. Nuarpear Lekfuangfu & Voraprapa Nakavachara & Paphatsorn Sawaengsuksant, 2017. "Glancing at Labour Market Mismatch with User-generated Internet Data," PIER Discussion Papers 53, Puey Ungphakorn Institute for Economic Research.
    18. Sergey Roshchin & Sergey Solntsev & Dmitry Vasilyev, 2017. "Recruiting and Job Search Technologies in the Age of Internet," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(4), pages 33-43.
    19. Fabo, B., 2017. "Towards an understanding of job matching using web data," Other publications TiSEM b8b877f2-ae6a-495f-b6cc-9, Tilburg University, School of Economics and Management.
    20. Ville Vehkasalo, 2020. "Effects of face-to-face counselling on unemployment rate and duration: evidence from a Public Employment Service reform," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-14, December.

    More about this item

    Keywords

    job search; unemployment; job finding rate; internet; DSL;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp11764. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.