Table 3.

Fuzzy regression discontinuity estimates of the effects of broadband use on plant employment—rural versus urban locations

Dependent variable:Plant employment
(1)(2)(3)(4)(5)(6)(7)(8)
LinearLinear interactionLinearLinear interactionLinearLinear interactionLinearLinear Interaction
Second Stage:
Broadband * Rural−0.170−0.1910.802***0.773***0.814***0.773***0.490*0.476*
(0.158)(0.152)(0.271)(0.265)(0.274)(0.268)(0.265)(0.261)
Broadband * Urban0.2320.2161.007***0.986***0.991***0.961***0.706***0.694***
(0.159)(0.153)(0.243)(0.239)(0.251)(0.247)(0.244)(0.241)
Year FE
Industry–Year FE
Region FE
Excluding panel obs.
Cragg–Donald F-Statistic464.25496.96189.10194.18135.77139.17152.70154.49
Kleibergen–Papp F-Statistic215.27240.9074.9478.2879.7283.9182.9285.57
Akaike Information Criterion133,685133,723132,450132,42379,37479,345126,582126,585
Test Urban = Rural (t-stat)7.081***7.106***3.454***3.625***3.089***3.299***4.023***4.051***
Observations36,25736,25736,25736,25722,31722,31736,13236,132
Dependent variable:Plant employment
(1)(2)(3)(4)(5)(6)(7)(8)
LinearLinear interactionLinearLinear interactionLinearLinear interactionLinearLinear Interaction
Second Stage:
Broadband * Rural−0.170−0.1910.802***0.773***0.814***0.773***0.490*0.476*
(0.158)(0.152)(0.271)(0.265)(0.274)(0.268)(0.265)(0.261)
Broadband * Urban0.2320.2161.007***0.986***0.991***0.961***0.706***0.694***
(0.159)(0.153)(0.243)(0.239)(0.251)(0.247)(0.244)(0.241)
Year FE
Industry–Year FE
Region FE
Excluding panel obs.
Cragg–Donald F-Statistic464.25496.96189.10194.18135.77139.17152.70154.49
Kleibergen–Papp F-Statistic215.27240.9074.9478.2879.7283.9182.9285.57
Akaike Information Criterion133,685133,723132,450132,42379,37479,345126,582126,585
Test Urban = Rural (t-stat)7.081***7.106***3.454***3.625***3.089***3.299***4.023***4.051***
Observations36,25736,25736,25736,25722,31722,31736,13236,132

Notes: The table presents parametric regression discontinuity estimates of the treatment effect of broadband use on plant (the log) of plant employment. Excluding panel observations examines robustness to restricting the sample to plants only observed once in our data. Data period 2000–2004. We choose not to report the coefficient estimates for the polynomial functions and the other control variables (firm age, foreign ownership and a multi-plant dummy) for the sake of parsimony. The polynomial function is chosen according to the specification that minimizes the Akaike Information Criterion. Two treatment effects are estimated, interacting Broadband adoption with a rural dummy and an urban dummy. The first-stage results refer to the effect of being attached to an ADSL broadband-enabled telephone exchange on the likelihood of a plant using broadband. Industries are measured at the three-digit SIC level and regions refer to government office regions. The first-stage results are omitted for brevity and reported in Appendix Table A3. ***, ** and * indicate significance at the 1, 5 and 10% level, respectively, with standard errors clustered at the firm-level reported in parentheses.

Table 3.

Fuzzy regression discontinuity estimates of the effects of broadband use on plant employment—rural versus urban locations

Dependent variable:Plant employment
(1)(2)(3)(4)(5)(6)(7)(8)
LinearLinear interactionLinearLinear interactionLinearLinear interactionLinearLinear Interaction
Second Stage:
Broadband * Rural−0.170−0.1910.802***0.773***0.814***0.773***0.490*0.476*
(0.158)(0.152)(0.271)(0.265)(0.274)(0.268)(0.265)(0.261)
Broadband * Urban0.2320.2161.007***0.986***0.991***0.961***0.706***0.694***
(0.159)(0.153)(0.243)(0.239)(0.251)(0.247)(0.244)(0.241)
Year FE
Industry–Year FE
Region FE
Excluding panel obs.
Cragg–Donald F-Statistic464.25496.96189.10194.18135.77139.17152.70154.49
Kleibergen–Papp F-Statistic215.27240.9074.9478.2879.7283.9182.9285.57
Akaike Information Criterion133,685133,723132,450132,42379,37479,345126,582126,585
Test Urban = Rural (t-stat)7.081***7.106***3.454***3.625***3.089***3.299***4.023***4.051***
Observations36,25736,25736,25736,25722,31722,31736,13236,132
Dependent variable:Plant employment
(1)(2)(3)(4)(5)(6)(7)(8)
LinearLinear interactionLinearLinear interactionLinearLinear interactionLinearLinear Interaction
Second Stage:
Broadband * Rural−0.170−0.1910.802***0.773***0.814***0.773***0.490*0.476*
(0.158)(0.152)(0.271)(0.265)(0.274)(0.268)(0.265)(0.261)
Broadband * Urban0.2320.2161.007***0.986***0.991***0.961***0.706***0.694***
(0.159)(0.153)(0.243)(0.239)(0.251)(0.247)(0.244)(0.241)
Year FE
Industry–Year FE
Region FE
Excluding panel obs.
Cragg–Donald F-Statistic464.25496.96189.10194.18135.77139.17152.70154.49
Kleibergen–Papp F-Statistic215.27240.9074.9478.2879.7283.9182.9285.57
Akaike Information Criterion133,685133,723132,450132,42379,37479,345126,582126,585
Test Urban = Rural (t-stat)7.081***7.106***3.454***3.625***3.089***3.299***4.023***4.051***
Observations36,25736,25736,25736,25722,31722,31736,13236,132

Notes: The table presents parametric regression discontinuity estimates of the treatment effect of broadband use on plant (the log) of plant employment. Excluding panel observations examines robustness to restricting the sample to plants only observed once in our data. Data period 2000–2004. We choose not to report the coefficient estimates for the polynomial functions and the other control variables (firm age, foreign ownership and a multi-plant dummy) for the sake of parsimony. The polynomial function is chosen according to the specification that minimizes the Akaike Information Criterion. Two treatment effects are estimated, interacting Broadband adoption with a rural dummy and an urban dummy. The first-stage results refer to the effect of being attached to an ADSL broadband-enabled telephone exchange on the likelihood of a plant using broadband. Industries are measured at the three-digit SIC level and regions refer to government office regions. The first-stage results are omitted for brevity and reported in Appendix Table A3. ***, ** and * indicate significance at the 1, 5 and 10% level, respectively, with standard errors clustered at the firm-level reported in parentheses.

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