Internet use and job search

Regression analysis augmented with propensity score methods is used to estimate the effect of Internet use on job search. The formal distinction between the unemployed and the discouraged is exploited, where both desire employment but the latter has ceased active job search. Results indicate broadband use at home or at public locations reduces the probability that the unemployed cease job search by over 50% relative to unemployed persons who do not use the Internet at all. The results suggest that even public connections (e.g., at libraries) in unserved and underserved areas may produce substantial social benefits.

► Regression analysis is used to quantify the effect of Internet use on job search.
► Internet use extends job search, keeping the unemployed active in the labor market.
► Public access is as effective as Broadband at home at reducing labor market discouragement.
► Dialup also provides benefits, though they are smaller than either Public use or Broadband at Home.