The Impact of Mobile Phones: Experimental Evidence from the Random Assignment of New Cell Towers

We present experimental evidence on the economic impacts of mobile phone access. Our results are based on a randomized control trial in the Philippines, through which 14 isolated and previously unconnected villages were randomly assigned to either receive or not receive a new mobile phone tower. Following a pre-analysis plan, we find that the introduction of mobile phones had large and significant impacts on household income and expenditure, particularly for wage workers. Mobile phone access also increased social connections within and between communities. However, there are no consistent impacts on market access, informedness, or subjective well being. In analysis not prespecified, we find suggestive evidence that the improved economic conditions are driven by increases in migration, remittances, and self-employment.