• Muroga Kiho Associate Professor, Graduate School of Economics, Kyushu University

• Shirahase Sawako TCJS Director

This paper estimates the effects of internet penetration on labor force participation, hours worked, employment status and wage. We found that internet penetration increases the probability of labor force participation. Our estimates also show that internet penetration is associated with a substantial increase in wage, especially for males. In addition, non-college-graduated groups are highly affected by internet penetration for both men and women. Those results suggest that internet penetration helps encourage more labor force participation because of an increase in wages.