near and far from terrestrial network of internet cables. They find that the probability that an individual (in one of the 12 selected countries) is employed increases between 6.9 and 13.2 percent when fast internet becomes accessible. Importantly, such probability is significant for skilled occupations, while unskilled jobs are unaffected by access to fast internet.

In parallel, another branch of research examines the effects of ICT adoption in rural areas, focusing mainly on those that have just received mobile coverage, and finds positive effects on the labor market. For instance, Klonner and Nolen (2008) study the effect of mobile network coverage in the rural labor market outcomes in South Africa. To identify the causal effect of network coverage on market outcomes the authors use terrain characteristics as instrumental variables. The authors find that employment increases by 15 percentage points when a region receives mobile coverage, and that this is even reflected in poverty reduction. Atasoy (2013) studies the effects of broadband internet adoption from 1999 to 2007 across counties in the United States. The author finds that broadband adoption is correlated with a 1.8 percentage points increase in the employment rate, but the impact is higher in rural counties. Similarly, Lu and Song (2020) rely on survey data from college students in China to study the effects of ICT on college students’ labor market outcomes and find that students who have received education on ICT-related subjects are more likely to obtain a job and a higher salary than their peers who did not receive such training.

Another stream of emerging studies focuses on the labor enhancing effects of the growth of new businesses based on online-platforms and AI. The common agreement is that digital platforms are transforming markets, making them more efficient, increasing product demand and ultimately, creating new jobs. For instance, in the taxicab market, the “Uber technology” has been linked to increased number of rides and the creation of over 30,000 jobs just from one startup (Vergara-Cobos, 2020). Our survey of the literature suggests that future research should focus on developing new online business models and work routines in response to the COVID-19 pandemic. Among other works, for example, Leonardi (2020) claims that the new work-model that COVID-19 enabled (in other words, the “work-from-home” model) has changed the work routine of companies; consequently, such a work model will continue to drive institutional innovation for decades to come.

_Table 4: Main empirical findings from studies on ICT adoption and labor market outcomes_

|**Labor market**|**Main conclusions**|**Sample**|**Time coverage**|
|---|---|---|---|
|Iacovone and Pereira-<br>López (2018)|ICT adoption in the manufacturing sector has increased<br>the demand for more high-skilled workers.|Mexico|2008-2013|
|Czernich (2014)|The availability of broadband Internet does not reduce<br>unemployment.|Germany|2006|
|Hjort and Poulsen<br>(2019)|The probability that an individual is employed increases<br>between 6.9 and 13.2 percent when fast Internet<br>becomes accessible.|12 African<br>countries|2006-2014|
|Klonner and Nolen<br>(2008)|Employment increases by 15 percentage points when a<br>region receives mobile coverage and that mobile<br>coverage is linked to poverty reduction.|South<br>Africa|1995-2001|

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