Mobile internet connectivity and household wealth in the Philippines

Wei, Zhiwu, Lee, Neil ORCID: 0000-0002-4138-7163 and Iddawela, Yohan (2025) Mobile internet connectivity and household wealth in the Philippines. Geography and Environment Discussion Paper Series (51). Department of Geography and Environment, The London School of Economics and Political Science, London, UK.

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Abstract

Mobile internet has become a fundamental component of modern infrastructure. In this paper, we consider the impact of mobile internet connectivity on household wealth in the Philippines. We construct a granular measure of local mobile internet connectivity using comprehensive information on approximately 0.27 million geocoded cell towers, and identify causal impact through a novel instrumental variable based on proximity to submarine cable landing points. Our results suggest that mobile internet connectivity significantly increases household wealth, with effects that persist across education levels and are more pronounced in urban areas compared to rural ones. Combining individual survey datasets with Points-of-Interest data, we investigate mechanisms and demonstrate that improved connectivity stimulates activities in several key economic sectors that create employment opportunities. Additionally, mobile internet connectivity enhances individual educational outcomes and promotes female labor force participation, though predominantly in occasional or seasonal roles.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://www.lse.ac.uk/geography-and-environment/re...
Additional Information:	© 2025 The Authors
Divisions:	Geography and Environment
Subjects:	H Social Sciences > HE Transportation and Communications H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor
JEL classification:	F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J63 - Turnover; Vacancies; Layoffs L - Industrial Organization > L8 - Industry Studies: Services > L86 - Information and Internet Services; Computer Software O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Date Deposited:	17 Jul 2025 09:54
Last Modified:	17 Jul 2025 09:54
URI:	http://eprints.lse.ac.uk/id/eprint/128856

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