Table 5.

Industry heterogeneity

Dependent variable:Plant employment
(1)(2)(3)(4)(5)(6)
LinearLinear interactionLinearLinear interactionLinearLinear interaction
Second Stage:
Broadband * Rural0.1410.1320.1920.1850.3880.372
(0.306)(0.301)(0.300)(0.295)(0.271)(0.267)
Broadband * Rural* KIA0.857**0.861**
(0.361)(0.360)
Broadband * Rural* HKS0.811**0.812**
(0.359)(0.358)
Broadband * Rural* R&D1.166*1.174*
(0.669)(0.669)
Broadband * Urban0.2710.2640.3220.3160.602**0.589**
(0.287)(0.282)(0.278)(0.274)(0.250)(0.247)
Broadband * Urban * KIA1.145***1.148***
(0.298)(0.297)
Broadband * Urban * HKS1.158***1.159***
(0.298)(0.298)
Broadband * Urban * R&D1.172**1.179**
(0.537)(0.536)
Industry–Year FE
Region FE
Cragg–Donald F-statistic72.3973.5874.8175.8776.0376.92
Kleibergen–Papp F-Statistic34.7436.2238.1139.6141.4642.81
Akaike Information Criterion127,105127,114127,095127,101126,651126,659
Observations36,13236,13236,13236,13236,13236,132
Dependent variable:Plant employment
(1)(2)(3)(4)(5)(6)
LinearLinear interactionLinearLinear interactionLinearLinear interaction
Second Stage:
Broadband * Rural0.1410.1320.1920.1850.3880.372
(0.306)(0.301)(0.300)(0.295)(0.271)(0.267)
Broadband * Rural* KIA0.857**0.861**
(0.361)(0.360)
Broadband * Rural* HKS0.811**0.812**
(0.359)(0.358)
Broadband * Rural* R&D1.166*1.174*
(0.669)(0.669)
Broadband * Urban0.2710.2640.3220.3160.602**0.589**
(0.287)(0.282)(0.278)(0.274)(0.250)(0.247)
Broadband * Urban * KIA1.145***1.148***
(0.298)(0.297)
Broadband * Urban * HKS1.158***1.159***
(0.298)(0.298)
Broadband * Urban * R&D1.172**1.179**
(0.537)(0.536)
Industry–Year FE
Region FE
Cragg–Donald F-statistic72.3973.5874.8175.8776.0376.92
Kleibergen–Papp F-Statistic34.7436.2238.1139.6141.4642.81
Akaike Information Criterion127,105127,114127,095127,101126,651126,659
Observations36,13236,13236,13236,13236,13236,132

Notes: The table presents parametric regression discontinuity estimates of the treatment effect of broadband use on plant and firm-level outcomes. These outcomes include (the log) of plant employment. KIA refers to knowledge-intensive sectors, those where at least 33% of the workforce have a tertiary education as defined by Eurostat (2014). R&D intensity is calculated by taking the ratio of R&D expenditure over gross value added at the two-digit sector level similar to consistent to Galindo-Rueda and Verger (2016). Firms are then classified as being in R&D intensive if their sector is in the top quartile of R&D intensity. HKS is a composite measure which takes into account expenditures in R&D toward technology development, the degree to which technology is being used and the overall skill of the workforce based on average occupational activities at the two-digit sector level (McNicoll et al., 2002). 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. Industries are measured at the three-digit SIC level and regions refer to government office regions. 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. The first-stage results are omitted for brevity. ***, ** and * indicate significance at the 1, 5 and 10% level, respectively, with standard errors clustered at the firm level reported in parentheses.

Table 5.

Industry heterogeneity

Dependent variable:Plant employment
(1)(2)(3)(4)(5)(6)
LinearLinear interactionLinearLinear interactionLinearLinear interaction
Second Stage:
Broadband * Rural0.1410.1320.1920.1850.3880.372
(0.306)(0.301)(0.300)(0.295)(0.271)(0.267)
Broadband * Rural* KIA0.857**0.861**
(0.361)(0.360)
Broadband * Rural* HKS0.811**0.812**
(0.359)(0.358)
Broadband * Rural* R&D1.166*1.174*
(0.669)(0.669)
Broadband * Urban0.2710.2640.3220.3160.602**0.589**
(0.287)(0.282)(0.278)(0.274)(0.250)(0.247)
Broadband * Urban * KIA1.145***1.148***
(0.298)(0.297)
Broadband * Urban * HKS1.158***1.159***
(0.298)(0.298)
Broadband * Urban * R&D1.172**1.179**
(0.537)(0.536)
Industry–Year FE
Region FE
Cragg–Donald F-statistic72.3973.5874.8175.8776.0376.92
Kleibergen–Papp F-Statistic34.7436.2238.1139.6141.4642.81
Akaike Information Criterion127,105127,114127,095127,101126,651126,659
Observations36,13236,13236,13236,13236,13236,132
Dependent variable:Plant employment
(1)(2)(3)(4)(5)(6)
LinearLinear interactionLinearLinear interactionLinearLinear interaction
Second Stage:
Broadband * Rural0.1410.1320.1920.1850.3880.372
(0.306)(0.301)(0.300)(0.295)(0.271)(0.267)
Broadband * Rural* KIA0.857**0.861**
(0.361)(0.360)
Broadband * Rural* HKS0.811**0.812**
(0.359)(0.358)
Broadband * Rural* R&D1.166*1.174*
(0.669)(0.669)
Broadband * Urban0.2710.2640.3220.3160.602**0.589**
(0.287)(0.282)(0.278)(0.274)(0.250)(0.247)
Broadband * Urban * KIA1.145***1.148***
(0.298)(0.297)
Broadband * Urban * HKS1.158***1.159***
(0.298)(0.298)
Broadband * Urban * R&D1.172**1.179**
(0.537)(0.536)
Industry–Year FE
Region FE
Cragg–Donald F-statistic72.3973.5874.8175.8776.0376.92
Kleibergen–Papp F-Statistic34.7436.2238.1139.6141.4642.81
Akaike Information Criterion127,105127,114127,095127,101126,651126,659
Observations36,13236,13236,13236,13236,13236,132

Notes: The table presents parametric regression discontinuity estimates of the treatment effect of broadband use on plant and firm-level outcomes. These outcomes include (the log) of plant employment. KIA refers to knowledge-intensive sectors, those where at least 33% of the workforce have a tertiary education as defined by Eurostat (2014). R&D intensity is calculated by taking the ratio of R&D expenditure over gross value added at the two-digit sector level similar to consistent to Galindo-Rueda and Verger (2016). Firms are then classified as being in R&D intensive if their sector is in the top quartile of R&D intensity. HKS is a composite measure which takes into account expenditures in R&D toward technology development, the degree to which technology is being used and the overall skill of the workforce based on average occupational activities at the two-digit sector level (McNicoll et al., 2002). 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. Industries are measured at the three-digit SIC level and regions refer to government office regions. 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. The first-stage results are omitted for brevity. ***, ** 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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