Broadband Infrastructure and Unemployment - Evidence for Germany

Published: June 1, 2011, 11 a.m.

b'Online job search is becoming increasingly prominent and is viewed to improve the efficiency of the search process. OLS results suggest a negative association of DSL availability with unemployment rates across German municipalities. However, the roll-out of DSL networks is not random. This paper exploits the fact that the availability of DSL connections depends on a municipality\\u2019s distance to the closest interconnection point to the pre-existing\\nvoice-telephony network. Instrumental-variable results using this distance as an instrument for DSL availability do not confirm the effect of DSL availability on unemployment.'