THE EFFECTS OF BROADBAND DEPLOYMENT ON OUTPUT AND EMPLOYMENT
[SOURCE: Brookings Institute, AUTHOR: Robert Crandall, William Lehr and Robert
Litan]
This study provides new estimates of the effects of broadband penetration on
both output and employment, in the aggregate and by sector, using state level
data. The study finds that nonfarm private employment and employment in several
industries, is positively associated with broadband use. More specifically, for
every one percentage point increase in broadband penetration in a state,
employment is projected to increase by 0.2 to 0.3 percent per year. For the
entire U.S. private non-farm economy, this suggests an increase of about
300,000 jobs, assuming the economy is not already at full employment. At a
more disaggregated level, the authors find that employment in both
manufacturing and services industries (especially finance, education and health
care) is positively related to broadband penetration. They also find that state
output of goods and services is positively associated with broadband use,
although probably because of noise in the underlying data, our estimates are
not statistically significant.
http://www3.brookings.edu/views/papers/crandall/200706litan.pdf
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