Internet Job Search, Employment, and Wage Growth: Evidence from the Arab Republic of Egypt

Abstract

This paper assesses the impact of Internet job search on employment in the Arab Republic of Egypt, the most populous country in the Middle East and North Africa region. Using panel data from the 2012 and 2018 rounds of the Egypt Labor Market Panel Survey, the paper examines the impact of Internet job search by the unemployed on their employment prospects. It also examines the impact of Internet job search by employed job seekers on their wage growth, as well as the impact of digitalization at the workplace on earnings. Accounting for individual and geographical unobserved heterogeneity using panel data, the results suggest that Internet job search is an effective job search method, as it increases the probability that the unemployed -- and in particular unemployed men -- will find employment. Auxiliary placebo regressions confirm that preexisting trends in labor market outcomes are not driving the results. However, Internet job search by employed job seekers does not appear to have an impact on their wage growth, nor does digitalization at the workplace affect the wage growth of employed individuals.