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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