Broadband Internet, Labor Demand, and Total Factor Productivity in Colombia
This paper studies the relationship between information and communication technology, labor demand, and total factor productivity in Colombia. It estimates total factor productivity for the Colombian manufacturing sector using a method that assumes...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/781921516821720202/Broadband-internet-labor-demand-and-total-factor-productivity-in-Colombia http://hdl.handle.net/10986/29284 |
| Summary: | This paper studies the relationship
between information and communication technology, labor
demand, and total factor productivity in Colombia. It
estimates total factor productivity for the Colombian
manufacturing sector using a method that assumes a law of
motion where total factor productivity evolves according to
an autoregressive process of order 1 as well as with the
past use of broadband technologies. Using fixed effects
models, the paper estimates the effect of broadband use on
the labor demand of different workers, controlling for total
factor productivity, capital, and wages. To address the
potential endogeneity between broadband adoption and labor
demand, the analysis uses state-industry level variation in
broadband quality (speed) and intensity of use. The results
show a positive association of broadband adoption on labor
demand, suggesting that adoption of information and
communication technology can offset the employment effects
of technological growth. Attempts to identify causal effects
using an instrumental variable approach were inconclusive. |
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