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Table 7 IV estimates, Western Germany, knowledge- and computer-intensive industries

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

Log empl. growth rate Knowledge-intensive industries Computer-intensive industries
Second stage
DSL availability 0.454 (1.95)* 0.616 (3.12)*** 0.269 (2.24)** 0.273 (3.38)***
Establishment controls Yes Yes Yes Yes
Municipality controls Yes Yes Yes Yes
Year FE   Yes   Yes
Industry FE (3-digit)   Yes   Yes
District FE   Yes   Yes
Observations 5868 5868 17,740 17,740
Adjusted R2 0.022 0.135 . a 0.045
First stage
Distance to MDF > 4.2 km − 0.067 (− 2.65)*** − 0.054 (− 4.96)*** − 0.054 (− 4.74)*** − 0.059 (− 6.53)***
Adjusted R2 0.263 0.620 0.134 0.402
Robust F stat. 7.030 25.246 22.462 42.929
Prob > F 0.008 0.000 0.000 0.000
Test of endogeneity p-value 0.174 0.038 0.012 0.013
  1. aNot reported because model sum of squares is negative. All estimations weighted by full-time employment. Constant omitted from output. Standard errors clustered at the municipality level
  2. Wooldridge (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