Table A9.

FRD estimates of the effects of broadband use on plant employment growth

Dependent variable:Employment growth
(1)(2)(3)(4)
LinearLinear interactionLinearLinear interaction
Second stage:
Broadband0.0730.103
(0.096)(0.089)
Broadband * Rural0.0600.093
(0.107)(0.100)
Broadband * Urban0.0690.100
(0.098)(0.091)
First stage—Broadband
Boundary0.180***0.189***
(0.032)(0.034)
First stage—Broadband * Rural
Boundary * Rural0.537***0.549***
(0.031)(0.033)
Boundary * Urban−0.200***−0.189***
(0.024)(0.026)
First stage—Broadband * Urban
Boundary * Rural−0.390***−0.393***
(0.029)(0.031)
Boundary * Urban0.387***0.383***
(0.027)(0.029)
Industry–year FE
Region FE
Cragg–Donald F-statistic71.6369.3433.4032.14
Kleibergen–Papp F-statistic32.3631.0014.4113.75
Akaike Information Criterion10,59810,63010,59610,627
Test: Urban = Rural (t-stat)−0.425−0.313
Observations10,34810,34810,34810,348
Dependent variable:Employment growth
(1)(2)(3)(4)
LinearLinear interactionLinearLinear interaction
Second stage:
Broadband0.0730.103
(0.096)(0.089)
Broadband * Rural0.0600.093
(0.107)(0.100)
Broadband * Urban0.0690.100
(0.098)(0.091)
First stage—Broadband
Boundary0.180***0.189***
(0.032)(0.034)
First stage—Broadband * Rural
Boundary * Rural0.537***0.549***
(0.031)(0.033)
Boundary * Urban−0.200***−0.189***
(0.024)(0.026)
First stage—Broadband * Urban
Boundary * Rural−0.390***−0.393***
(0.029)(0.031)
Boundary * Urban0.387***0.383***
(0.027)(0.029)
Industry–year FE
Region FE
Cragg–Donald F-statistic71.6369.3433.4032.14
Kleibergen–Papp F-statistic32.3631.0014.4113.75
Akaike Information Criterion10,59810,63010,59610,627
Test: Urban = Rural (t-stat)−0.425−0.313
Observations10,34810,34810,34810,348

Notes: The table presents parametric regression discontinuity estimates of the treatment effect of broadband use on 1-year change in log employment. 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. 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. Broadband boundary is a zero-one indicator equal to one if the plant is inside the area of broadband-enabled telephone exchanges. In Columns 3 and 4, two treatment effects are estimated, interacting Broadband adoption with a rural dummy and an urban dummy, and the Boundary instrument is similarly interacted. ***, ** and * indicate significance at the 1, 5 and 10% level, respectively, with standard errors clustered at the firm-level reported in parentheses.

Table A9.

FRD estimates of the effects of broadband use on plant employment growth

Dependent variable:Employment growth
(1)(2)(3)(4)
LinearLinear interactionLinearLinear interaction
Second stage:
Broadband0.0730.103
(0.096)(0.089)
Broadband * Rural0.0600.093
(0.107)(0.100)
Broadband * Urban0.0690.100
(0.098)(0.091)
First stage—Broadband
Boundary0.180***0.189***
(0.032)(0.034)
First stage—Broadband * Rural
Boundary * Rural0.537***0.549***
(0.031)(0.033)
Boundary * Urban−0.200***−0.189***
(0.024)(0.026)
First stage—Broadband * Urban
Boundary * Rural−0.390***−0.393***
(0.029)(0.031)
Boundary * Urban0.387***0.383***
(0.027)(0.029)
Industry–year FE
Region FE
Cragg–Donald F-statistic71.6369.3433.4032.14
Kleibergen–Papp F-statistic32.3631.0014.4113.75
Akaike Information Criterion10,59810,63010,59610,627
Test: Urban = Rural (t-stat)−0.425−0.313
Observations10,34810,34810,34810,348
Dependent variable:Employment growth
(1)(2)(3)(4)
LinearLinear interactionLinearLinear interaction
Second stage:
Broadband0.0730.103
(0.096)(0.089)
Broadband * Rural0.0600.093
(0.107)(0.100)
Broadband * Urban0.0690.100
(0.098)(0.091)
First stage—Broadband
Boundary0.180***0.189***
(0.032)(0.034)
First stage—Broadband * Rural
Boundary * Rural0.537***0.549***
(0.031)(0.033)
Boundary * Urban−0.200***−0.189***
(0.024)(0.026)
First stage—Broadband * Urban
Boundary * Rural−0.390***−0.393***
(0.029)(0.031)
Boundary * Urban0.387***0.383***
(0.027)(0.029)
Industry–year FE
Region FE
Cragg–Donald F-statistic71.6369.3433.4032.14
Kleibergen–Papp F-statistic32.3631.0014.4113.75
Akaike Information Criterion10,59810,63010,59610,627
Test: Urban = Rural (t-stat)−0.425−0.313
Observations10,34810,34810,34810,348

Notes: The table presents parametric regression discontinuity estimates of the treatment effect of broadband use on 1-year change in log employment. 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. 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. Broadband boundary is a zero-one indicator equal to one if the plant is inside the area of broadband-enabled telephone exchanges. In Columns 3 and 4, two treatment effects are estimated, interacting Broadband adoption with a rural dummy and an urban dummy, and the Boundary instrument is similarly interacted. ***, ** 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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