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Table 8 IV estimates, alternative IVs (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 − 0.143 (− 1.50) − 0.053 (− 0.74) 0.194** (2.18) 0.225*** (2.87)
Establishment controls Yes Yes Yes Yes
Municipality controls Yes Yes Yes Yes
Year FE Yes Yes Yes Yes
Industry FE (3-digit) Yes Yes Yes Yes
District FE Yes Yes Yes Yes
Observations 14,029 14,823 17,706 18,650
Adjusted R2 0.060 0.064 0.052 0.047
First stage
Distance to MDF > 4.2 km (measured from population-weighted centroid) − 0.063 (− 6.50)***   − 0.084 (− 5.52)***  
Share of land area above 4.2 km distance threshold   − 0.110 (− 5.80)***   − 0.157 (− 5.94)***
Adj. R-sq. 0.463 0.461 0.410 0.427
Robust F stat. 42.424 33.837 30.665 35.465
Prob > F 0.000 0.000 0.000 0.000
Test of endogeneity p-valuea 0.117 0.444 0.074 0.010
  1. aWooldridge (1995) robust score test of regressor endogeneity (H0 = exogenous). Data sources: Broadband Atlas Germany, Deutsche Telekom, Google Earth, Corine Land Cover database, BHP 7510
  2. 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