Mobile Internet Connectivity and Household Wealth in the Philippines


November 2025

Mobile-Internet-Connectivity-and-Household-Wealth-in-the-Philippines

Mobile internet has become a fundamental component of modern infrastructure. This paper considers the impact of mobile internet connectivity on household wealth in the Philippines. It constructs a granular measure of local mobile internet connectivity using comprehensive information on approximately 0.27 million geocoded cell towers, and identifies causal impact through a novel instrumental variable based on proximity to submarine cable landing points.

The results suggest that mobile internet connectivity significantly increases household wealth, with effects that persist across education levels and are more pronounced in urban areas compared to rural ones. Combining individual survey datasets with Points-of-Interest data, the paper investigates mechanisms and demonstrate that improved connectivity stimulates activities in several key economic sectors that create employment opportunities. Additionally, mobile internet connectivity enhances individual educational outcomes and promotes female labor force participation, though predominantly in occasional or seasonal roles.

Client: Asian Development Bank

Authors: Neil Lee, Zhiwu Wei, Yohan Iddawela

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