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Do Digital Information Technologies Help Unemployed Job Seekers Find a Job? Evidence from the Broadband Internet Expansion in Germany

Author

Listed:
  • Gürtzgen, Nicole

    (Institute for Employment Research (IAB), Nuremberg)

  • Nolte, André

    (ZEW Mannheim)

  • Pohlan, Laura

    (Institute for Employment Research (IAB), Nuremberg)

  • van den Berg, Gerard J.

    (University of Groningen)

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," IZA Discussion Papers 11555, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11555
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    References listed on IDEAS

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    Citations

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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. Jin, Xin & Ma, Baojie & Zhang, Haifeng, 2023. "Impact of fast internet access on employment: Evidence from a broadband expansion in China," China Economic Review, Elsevier, vol. 81(C).
    3. 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.
    4. 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).
    5. 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).
    6. 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).
    7. Qiong Xu & Xin Li & Fei Guo, 2023. "Digital transformation and environmental performance: Evidence from Chinese resource‐based enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1816-1840, July.
    8. Wang, Yi & Niu, Geng & Zhou, Yang & Lu, Weijie, 2023. "Broadband internet and stock market participation," International Review of Financial Analysis, Elsevier, vol. 85(C).
    9. Piotr Denderski & Florian Sniekers, 2024. "Declining Search Frictions, Unemployment and Self-Employment," The Economic Journal, Royal Economic Society, vol. 134(659), pages 1100-1145.
    10. 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.
    11. McDool, Emily & Powell, Philip & Roberts, Jennifer & Taylor, Karl, 2020. "The internet and children’s psychological wellbeing," Journal of Health Economics, Elsevier, vol. 69(C).
    12. Johannes Moser & Fabian Wenner & Alain Thierstein, 2022. "Working From Home and Covid-19: Where Could Residents Move to?," Urban Planning, Cogitatio Press, vol. 7(3), pages 15-34.
    13. Zhao, Xiaoxia & Cai, Lianghui, 2023. "Digital transformation and corporate ESG: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PA).
    14. 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.
    15. Choi, Eleanor Jawon, 2023. "Does the internet help the unemployed find jobs?," Information Economics and Policy, Elsevier, vol. 62(C).
    16. Liu, Na & Xu, Qinqiao & Gao, Meng, 2024. "Digital transformation and tourism listed firm performance in COVID-19 shock," Finance Research Letters, Elsevier, vol. 63(C).
    17. Sabatini, Fabio, 2023. "The Behavioral, Economic, and Political Impact of the Internet and Social Media: Empirical Challenges and Approaches," IZA Discussion Papers 16703, Institute of Labor Economics (IZA).
    18. 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

    search channels; matching technology; information frictions; online job search; unemployment;
    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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