Measuring the indirect effect of the Internet on the relationship between human capital and labor productivity
Nicole Ballouz Baker, Mona Said Boustany, Maroun Khater, Christian Haddad
Abstract
In an attempt to lift data availability constraints, this paper investigates into the third level digital divide in 65 developing countries for the period 2000–2014, by studying the existence of a mediating impact of Internet use on the relationship between human capital and total labor productivity, and labor productivity by sector. Results of our mediation models with fixed effects panel regressions and Bootstrapping revealed an Internet use mediation effect of 24.20% on the total effect of human capital on total labor productivity, 27% on labor productivity in services and 23% in industry. Mediation was found to be inconsistent in agriculture.
Topics & Concepts
EconomicsProductivityHuman capitalDeveloping countryThe InternetLabour economicsEconometricsEconomic geographyMacroeconomicsEconomic growthComputer scienceWorld Wide WebICT Impact and PoliciesFiscal Policy and Economic GrowthEconomic Growth and Productivity