Democracy, mobile internet, and employment

Access to mobile internet increases labor force participation and boosts employment

Access to the internet is at the forefront of many economic policy and development efforts because internet access can lower information, communication, and transaction costs. Researchers analyzed how the expansion of 3G internet affects men and women’s employment in developing countries. They found that the expansion of 3G meaningfully increases female labor force participation rates and lowers the probability of remaining unemployed for both men and women. The type of jobs men and women worked were also affected. Men transitioned away from unpaid agricultural work (primarily unpaid family work) into operating small agricultural businesses, while women took on that unpaid family agricultural work and started more of their own small businesses. This research shows how technologies like 3G impact individuals’ short and medium-term employment opportunities.

Internet penetration occurs faster and more equitably in democracies than nondemocracies

Researchers analyzed how levels of democracy and development impact Internet penetration rates and who gets internet access. They found that Internet penetration has increased at higher rates in more democratic countries and more developed ones. They also found that politically excluded groups have significantly lower Internet penetration rates than politically included groups in the same country; because democratic countries have much lower percentages of excluded populations (on average 6%, compared with 21% in nondemocracies), digital discrimination is a much more severe issue in nondemocratic countries. This research shows how nondemocratic governments strategically extend digital communication services to politically favored groups.

For more information about democracy and public goods provision, see the November 2022 Learning Digest.

Do you have a study we should share for a future Facty Friday? Send an email to drg.el@usaid.gov!