Economywide and Sectoral Impacts on Workers of Brazil’s Internet Rollout

This paper is a study of the effect of Brazil's staggered Internet rollout between 2000 and 2014 on municipality employment and wages. The study uses a new, annual data set on Internet availability from the Brazil school census, with the assum...

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Main Authors: Dutz, Mark A., Ferreira Mation, Lucas, O'Connell, Stephen D., Willig, Robert D.
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/973891493212601857/Economywide-and-sectoral-impacts-on-workers-of-Brazil-s-internet-rollout
http://hdl.handle.net/10986/26480
id okr-10986-26480
recordtype oai_dc
spelling okr-10986-264802021-06-10T09:02:07Z Economywide and Sectoral Impacts on Workers of Brazil’s Internet Rollout Dutz, Mark A. Ferreira Mation, Lucas O'Connell, Stephen D. Willig, Robert D. INTERNET TECHNOLOGY LABOR DEMAND WAGE INEQUALITY EMPLOYMENT This paper is a study of the effect of Brazil's staggered Internet rollout between 2000 and 2014 on municipality employment and wages. The study uses a new, annual data set on Internet availability from the Brazil school census, with the assumption that the share of schools that have Internet access in each municipality reflects the general accessibility of Internet connections. These data are combined with Brazil's rich, matched employer-employee survey, which contains annual occupation and wage earnings information for all formally-employed workers in Brazil across all sectors, including primary, secondary, and tertiary industry groups. Contemporaneous and lagged effects are considered. The analysis finds that increased Internet access has no statistically significant net effect on aggregate employment, and has a negative effect on average wages, with a reduction in measures of wage dispersion. Brazil’s Internet rollout results in employment shifts from sectors with more limited expansion opportunities (wholesale and retail trade, public administration, and largely publicly-owned utilities, which jointly comprise almost half of the formal workforce in 2010) to sectors with more output expansion opportunities. The employment effects are positive and most pronounced in the manufacturing, transport and storage, finance and insurance, and hospitality industry groups. In the manufacturing sector, Internet access induces positive employment and wage effects in medium- and high-skill occupations. 2017-04-27T17:10:34Z 2017-04-27T17:10:34Z 2017-04 Working Paper http://documents.worldbank.org/curated/en/973891493212601857/Economywide-and-sectoral-impacts-on-workers-of-Brazil-s-internet-rollout http://hdl.handle.net/10986/26480 English en_US Policy Research Working Paper;No. 8042 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Brazil
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic INTERNET
TECHNOLOGY
LABOR DEMAND
WAGE INEQUALITY
EMPLOYMENT
spellingShingle INTERNET
TECHNOLOGY
LABOR DEMAND
WAGE INEQUALITY
EMPLOYMENT
Dutz, Mark A.
Ferreira Mation, Lucas
O'Connell, Stephen D.
Willig, Robert D.
Economywide and Sectoral Impacts on Workers of Brazil’s Internet Rollout
geographic_facet Latin America & Caribbean
Brazil
relation Policy Research Working Paper;No. 8042
description This paper is a study of the effect of Brazil's staggered Internet rollout between 2000 and 2014 on municipality employment and wages. The study uses a new, annual data set on Internet availability from the Brazil school census, with the assumption that the share of schools that have Internet access in each municipality reflects the general accessibility of Internet connections. These data are combined with Brazil's rich, matched employer-employee survey, which contains annual occupation and wage earnings information for all formally-employed workers in Brazil across all sectors, including primary, secondary, and tertiary industry groups. Contemporaneous and lagged effects are considered. The analysis finds that increased Internet access has no statistically significant net effect on aggregate employment, and has a negative effect on average wages, with a reduction in measures of wage dispersion. Brazil’s Internet rollout results in employment shifts from sectors with more limited expansion opportunities (wholesale and retail trade, public administration, and largely publicly-owned utilities, which jointly comprise almost half of the formal workforce in 2010) to sectors with more output expansion opportunities. The employment effects are positive and most pronounced in the manufacturing, transport and storage, finance and insurance, and hospitality industry groups. In the manufacturing sector, Internet access induces positive employment and wage effects in medium- and high-skill occupations.
format Working Paper
author Dutz, Mark A.
Ferreira Mation, Lucas
O'Connell, Stephen D.
Willig, Robert D.
author_facet Dutz, Mark A.
Ferreira Mation, Lucas
O'Connell, Stephen D.
Willig, Robert D.
author_sort Dutz, Mark A.
title Economywide and Sectoral Impacts on Workers of Brazil’s Internet Rollout
title_short Economywide and Sectoral Impacts on Workers of Brazil’s Internet Rollout
title_full Economywide and Sectoral Impacts on Workers of Brazil’s Internet Rollout
title_fullStr Economywide and Sectoral Impacts on Workers of Brazil’s Internet Rollout
title_full_unstemmed Economywide and Sectoral Impacts on Workers of Brazil’s Internet Rollout
title_sort economywide and sectoral impacts on workers of brazil’s internet rollout
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/973891493212601857/Economywide-and-sectoral-impacts-on-workers-of-Brazil-s-internet-rollout
http://hdl.handle.net/10986/26480
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