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The Welfare Effects of Mobile Broadband Internet: Evidence from Nigeria

Author

Listed:
  • Bahia, Kalvin

    (GSMA)

  • Castells, Pau

    (GSMA)

  • Cruz, Genaro

    (GSMA)

  • Masaki, Takaaki

    (World Bank)

  • Pedrós, Xavier

    (GSMA)

  • Pfutze, Tobias

    (Florida International University)

  • Rodriguez Castelan, Carlos

    (World Bank)

  • Winkler, Hernan

    (World Bank)

Abstract

This paper estimates the impacts of mobile broadband coverage on household consumption and poverty in Nigeria, the largest economy and mobile broadband market in Africa. The analysis exploits a unique dataset that integrates three waves of a nationally representative longitudinal household survey on living standards with information from Nigerian mobile operators on the deployment of mobile broadband (3G and 4G) coverage between 2010 and 2016. The estimates show that mobile broadband coverage had large and positive impacts on household consumption levels which increased over time, although at a decreasing rate. Mobile broadband coverage also reduces the proportion of households below the poverty line, driven by higher food and non-food consumption in rural households. These effects are mainly due to an increase in labor force participation and employment, particularly among women.

Suggested Citation

  • Bahia, Kalvin & Castells, Pau & Cruz, Genaro & Masaki, Takaaki & Pedrós, Xavier & Pfutze, Tobias & Rodriguez Castelan, Carlos & Winkler, Hernan, 2020. "The Welfare Effects of Mobile Broadband Internet: Evidence from Nigeria," IZA Discussion Papers 13219, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13219
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    References listed on IDEAS

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    Cited by:

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    2. Masaki, Takaaki & Ochoa, Rogelio Granguillhome & Rodriguez Castelan, Carlos, 2020. "Broadband Internet and Household Welfare in Senegal," IZA Discussion Papers 13658, Institute of Labor Economics (IZA).
    3. Bahia, Kalvin & Castells, Pau & Cruz, Genaro & Masaki, Takaaki & Rodriguez Castelan, Carlos & Sanfelice, Viviane, 2021. "Mobile Broadband Internet, Poverty and Labor Outcomes in Tanzania," IZA Discussion Papers 14720, Institute of Labor Economics (IZA).
    4. Rodríguez-Castelán, Carlos & Araar, Abdelkrim & Malásquez, Eduardo A. & Granguillhome Ochoa, Rogelio, 2022. "Competition reform and household welfare: A microsimulation analysis of the telecommunication sector in Ethiopia," Telecommunications Policy, Elsevier, vol. 46(2).
    5. Caldarola, Bernardo & Grazzi, Marco & Occelli, Martina & Sanfilippo, Marco, 2023. "Mobile internet, skills and structural transformation in Rwanda," Research Policy, Elsevier, vol. 52(10).
    6. Kusumawardhani, Niken & Pramana, Rezanti & Saputri, Nurmala Selly & Suryadarma, Daniel, 2023. "Heterogeneous impact of internet availability on female labor market outcomes in an emerging economy: Evidence from Indonesia," World Development, Elsevier, vol. 164(C).
    7. Mensah,Justice Tei & Hirfrfot,Kibrom Tafere & Abay,Kibrom A., 2022. "Saving Lives through Technology : Mobile Phones and Infant Mortality," Policy Research Working Paper Series 9978, The World Bank.
    8. Granguillhome Ochoa, Rogelio & Lach, Samantha & Masaki, Takaaki & Rodríguez-Castelán, Carlos, 2022. "Mobile internet adoption in West Africa," Technology in Society, Elsevier, vol. 68(C).
    9. Mina Baliamoune, 2022. "Trade and Youth Labor Market Outcomes: Empirical Evidence and Policy Implications," Research papers & Policy papers 1945, Policy Center for the New South.
    10. Houngbonon,Georges Vivien & Mensah,Justice Tei & Traore,Nouhoum-000531164, 2022. "The Impact of Internet Access on Innovation and Entrepreneurship in Africa," Policy Research Working Paper Series 9945, The World Bank.

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    More about this item

    Keywords

    poverty; household consumption; mobile broadband; Africa; Nigeria;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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