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American Economic Review: Vol. 101 No. 7 (December 2011)

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The Effects of Rural Electrification on Employment: New Evidence from South Africa

Article Citation

Dinkelman, Taryn. 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa." American Economic Review, 101(7): 3078-3108.

DOI: 10.1257/aer.101.7.3078

Abstract

This paper estimates the impact of electrification on employment growth by analyzing South Africa's mass roll-out of electricity to rural households. Using several new data sources and two different identification strategies (an instrumental variables strategy and a fixed effects approach), I find that electrification significantly raises female employment within five years. This new infrastructure appears to increase hours of work for men and women, while reducing female wages and increasing male earnings. Several pieces of evidence suggest that household electrification raises employment by releasing women from home production and enabling microenterprises. Migration behavior may also be affected. (JEL H54, L94, L98, O15, O18, R23)

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Authors

Dinkelman, Taryn (Princeton U)

JEL Classifications

H54: National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock
L94: Electric Utilities
L98: Industry Studies: Utilities and Transportation: Government Policy
O15: Economic Development: Human Resources; Human Development; Income Distribution; Migration
O18: Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
R23: Urban, Rural, Regional, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics


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