The effect of internet and cell phones on employment and agricultural production in rural villages in Peru

Abstract

La presente investigación tiene como objetivo principal analizar si el subsidio otorgado para incrementar el acceso a Internet en las localidades aisladas del Perú por el programa BAS ha generado algún efecto en los niveles de producción y rentabilidad de los agricultores así como en el nivel de empleo. Para ello se analiza un proyecto de inversión que promueve el acceso y uso de servicios de telecomunicaciones en áreas rurales del país. Finalmente, se puede concluir que el acceso a las TICs benefician las localidad peruanas, teniendo un gran impacto en el sector agrícola y en el empleo.

In this paper we analyze the impact of a program that subsidized Internet access in rural and remote areas of Peru. We estimate a local treatment effect applying a Difference-in-Difference approach and a Triple Difference approach. We run several placebo tests to verify that the results are not generated by previous trends. We find that the program increased not only Internet usage but also ownership of cell phones and home phones. We also find that the program increased employment of educated, single, and young individuals. Additionally, the program led to an increase in the prices farmers received for their traditional products and in the production of more processed goods. The effects on cell phones ownership are higher and more widespread than the effects on Internet usage, but our evidence suggest that, at least for the case of the effects on employment, Internet access might have played an important role.