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Table 4 IV estimates, Western Germany

From: Broadband internet availability and establishments’ employment growth in Germany: evidence from instrumental variables estimations

Log employment growth rate

Manufacturing

Services

Second stage

DSL availability

− 0.125 (− 1.36)

− 0.237 (− 2.30)**

0.284 (2.36)**

0.325 (3.14)***

Log full-time employment, est.

0.004 (1.65)*

− 0.005 (− 1.79)*

0.002 (0.62)

− 0.000

(− 0.05)

Log median full-time wage, est.

0.010 (0.74)

0.053 (4.63)***

0.011 (1.25)

0.015 (2.44)**

Young establishment (< 5 years)

0.002 (0.25)

− 0.007 (− 0.72)

0.041 (4.02)***

0.019 (1.52)

Mid-age establishment (5–14 years)

0.002 (0.20)

− 0.005 (− 0.75)

0.016 (2.13)**

0.006 (1.06)

Share high-skilled

0.067 (2.14)**

0.071 (2.59)***

0.011 (0.72)

0.015 (1.16)

Log full-time employment, mun.

0.004 (0.99)

0.003 (0.76)

− 0.005 (− 0.93)

− 0.010 (− 1.94)*

Log full-time empl. density, mun.

− 0.007 (− 1.53)

− 0.004 (− 0.75)

− 0.022 (− 3.29)***

− 0.010 (− 2.01)**

Log mean full-time wage, mun.

0.009 (0.35)

− 0.001 (− 0.05)

0.116 (2.07)**

0.123 (2.97)***

Log full-time empl. growth rate, mun.

0.039 (1.38)

− 0.016 (− 0.67)

0.024 (0.36)

0.013 (0.18)

Share high-skilled, municipality

− 0.047 (− 1.02)

0.028 (0.69)

− 0.092 (− 1.32)

− 0.048 (− 1.25)

Year FE

 

Yes

 

Yes

Industry FE (3-digit)

 

Yes

 

Yes

District FE

 

Yes

 

Yes

Observations

14,823

14,823

18,650

18,650

Adjusted R2

0.002

0.044

. a

0.034

First stage

    

Distance to MDF > 4.2 km

− 0.064 (− 4.38)***

− 0.053 (− 7.35)***

− 0.061 (− 3.86)***

− 0.062 (− 5.34)***

Adjusted R2

0.115

0.456

0.122

0.404

Robust F stat.

19.221

54.294

14.930

28.646

Prob > F

0.000

0.000

0.000

0.000

Test of endogeneity p-valueb

0.254

0.012

0.011

0.002

  1. aNot reported because model sum of squares is negative
  2. bWooldridge (1995) robust score test of regressor endogeneity (H0 = exogenous). Data sources: Broadband Atlas Germany, Deutsche Telekom, BHP 7510
  3. t statistics in parentheses. * p < 0.10, ** p < 0.05, *** p < 0.01. All estimations weighted by full-time employment. Constant omitted from output. Standard errors clustered at the municipality level