Wired and working? An evaluation of broadband expansion in Rural America

Abstract

This paper estimates the economic impacts of broadband deployment in rural areas in the United States under the Connect America Fund (CAF) Phase II Price Cap program – the largest component of CAF, a federally funded initiative designed to subsidize service provision in high-cost, underserved or unserved areas. Using a panel dataset of census tracts from the years 2010–2023, we exploit the staggered implementation of the program as a quasi-experimental setting and estimate its effects. Our analysis focuses on impacts on employment, self-employment, and household income. Results indicate that broadband deployment had a positive impact on both employment and income in treated areas, with effects strengthening over time. However, we find no evidence of impacts on self-employment. This study contributes to a growing literature on the economic effects of broadband infrastructure by evaluating one of the most extensive telecommunications interventions in US history.