The Skill Complementarity of Broadband Internet / Anders Akerman, Ingvil Gaarder, Magne Mogstad.

Format:

Book

Author/Creator:

Akerman, Anders.

Contributor:

National Bureau of Economic Research.

Gaarder, Ingvil.

Mogstad, Magne.

Series:

Working Paper Series (National Bureau of Economic Research) no. w20826.

NBER working paper series no. w20826

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2015.

Summary:

Does adoption of broadband internet in firms enhance labor productivity and increase wages? And is this technological change skill biased or factor neutral? We exploit rich Norwegian data to answer these questions. A public program with limited funding rolled out broadband access points, and provides plausibly exogenous variation in the availability and adoption of broadband internet in firms. Our results suggest that broadband internet improves (worsens) the labor outcomes and productivity of skilled (unskilled) workers. We explore several possible explanations for the skill complementarity of broadband internet. We find suggestive evidence that broadband adoption in firms complements skilled workers in executing nonroutine abstract tasks, and substitutes for unskilled workers in performing routine tasks. Taken together, our findings have important implications for the ongoing policy debate over government investment in broadband infrastructure to encourage productivity and wage growth.

Notes:

Print version record

January 2015.