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Do digital information technologies help unemployed job seekers find a job? Evidence from the broadband internet expansion in Germany

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  • Gürtzgen, Nicole
  • Nolte, André
  • Pohlan, Laura
  • van den Berg, Gerard J.

Abstract

This paper studies effects of the introduction of a new digital mass medium on reemployment of unemployed job seekers. We combine data on high-speed (broadband) internet availability at the local level with individual register data on the unemployed in Germany. We address endogeneity by exploiting technological peculiarities in the network that affected the roll-out of high-speed internet. The results show that high-speed internet improves reemployment rates after the first months of the unemployment spell. This is confirmed by complementary analysis with individual survey data suggesting that online job search leads to additional formal job interviews after a few months in unemployment.

Suggested Citation

  • Gürtzgen, Nicole & Nolte, André & Pohlan, Laura & van den Berg, Gerard J., 2018. "Do digital information technologies help unemployed job seekers find a job? Evidence from the broadband internet expansion in Germany," ZEW Discussion Papers 18-030, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:18030
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    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.
    2. Diegmann, André, 2019. "The internet effects on sex crime offenses - Evidence from the German broadband internet expansion," Journal of Economic Behavior & Organization, Elsevier, vol. 165(C), pages 82-99.
    3. 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).
    4. Briscese, Guglielmo & Zanella, Giulio & Quinn, Veronica, 2020. "Improving Job Search Skills: A Field Experiment on Online Employment Assistance," IZA Discussion Papers 13170, Institute of Labor Economics (IZA).
    5. 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).
    6. Guglielmo Briscese & Giulio Zanella & Veronica Quinn, 2022. "Providing Government Assistance Online: A Field Experiment with the Unemployed," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(2), pages 579-602, March.
    7. McDool, Emily & Powell, Philip & Roberts, Jennifer & Taylor, Karl, 2020. "The internet and children’s psychological wellbeing," Journal of Health Economics, Elsevier, vol. 69(C).
    8. 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.
    9. 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).

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    More about this item

    Keywords

    unemployment; online job search; information frictions; matching technology; search channels;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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