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Television and the Labour Supply: Evidence from the Digital Television Transition in the UK Adri an Nieto Castro LISER CInSt Research Seminar May 14, 2020 Adri an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the

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Television and the Labour Supply: Evidence from the Digital Television Transition in the UK

Adri´ an Nieto Castro

LISER

CInSt Research Seminar May 14, 2020

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 1 / 44

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Outline

1

Introduction

2

Natural Experiment

3

Data

4

Methodology

5

Results

6

Mechanisms

7

Conclusions

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 2 / 44

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Motivation

Television: one of the most important leisure activities for majority of individuals

Average broadcast TV viewing time in the UK: 3 hours 12 minutes (Ofcom, 2019)

Considerable attention to the effects of television on:

Educational performance (Keith et al., 1986; Christakis et al., 2004; Hancox et al., 2005; Gentzkow and Shapiro, 2008; Nieto, 2019) Political outcomes (Gentzkow, 2006; DellaVigna and Kaplan, 2007; Barone et al., 2015) Living conditions of women (Jensen and Oster, 2009) Fertility (La Ferrara et al., 2012) Crime concerns (Mastrorocco and Minale, 2018)

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 3 / 44

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Motivation

Effect of television on labour outcomes largely unexplored However, reasons to believe that there is an impact On the one hand, television increases:

Obesity (Tucker and Bagwell, 1991; Tahir et al., 2018) Diseases (Hu et al., 2003; Hamer et al., 2010; Grøntved and Hu, 2011) Violence (Johnson et al., 2002)

On the other, television reduces:

Parents’ time spent with children (Vandewater et al., 2006)

Previous changes may have implications for labour supply. Only existing evidence:

Watching television in childhood positively correlated with unemployment in adulthood (Landhuis et al., 2012)

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 4 / 44

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SLIDE 5

Research Question

Does television change labour supply? Endogeneity concerns:

Initial employment status may be a determinant of TV watching time Presence of unobserved confounders correlated with both TV watching time and labour status

I use the digital television transition in UK as a natural experiment

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 5 / 44

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Overview

The digital television transition increases labour supply

The effect is driven by parents, and in particular, mothers The effect is driven by an increase in part-time and self-employment The effect increases with the number of children and for non-cohabiting parents

Presence of children plays a crucial role Possible explanation:

Television may keep children busy → parents increase labour supply

Television reduces housework time for mothers, but not for fathers and non-parents

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 6 / 44

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SLIDE 7

1

Introduction

2

Natural Experiment

3

Data

4

Methodology

5

Results

6

Mechanisms

7

Conclusions

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 7 / 44

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Natural Experiment

I use the digital television transition in UK as a natural experiment The digital switchover occurred between 2008 and 2012 and it:

Raised the number of television channels from 5 to 40 Possibility of watching TV in other languages

One of the most important revolutions in the British TV market:

Gave access to digital television to millions of households Part of the population bought top boxes only months before switchover Television viewing time increased by 10% Television contents did not change

Two advantages of the natural experiment:

Implemented by two independent organizations Strong variation in its timing across neighbouring geographical units

I exploit variation in digital transition deadlines across 40,000 geographical units in the UK

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 8 / 44

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Natural Experiment

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 9 / 44

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Television Viewing Time

1400 1600 1800 2000 Average TV Watching Minutes per Week 2007 2008 2009 2010 2011 2012 2013 2014

Panel A: TV Viewing Time

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 10 / 44

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Audience Share Traditional Channels

50 55 60 65 Share of Analogue Channels 2007 2008 2009 2010 2011 2012 2013 2014

Panel B: Share of Traditional Channels

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 11 / 44

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TV Contents Evolution

E n t e r t a i n m e n t E d u c a t i

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a r y M a t t e r s N e w s c a s t s O t h e r 20 40 60 80 100 Percentage 2007 2008 2009 2010 2011 2012 2013 2014 Year

TV Content Detailed Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 12 / 44

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SLIDE 13

1

Introduction

2

Natural Experiment

3

Data

4

Methodology

5

Results

6

Mechanisms

7

Conclusions

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 13 / 44

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Data

Use data on digital transition dates across 40,000 geographical units Use data on first seven waves of the Understanding Society Survey:

US survey follows members of 40,000 households in a yearly basis since 2009 I construct a large panel dataset at individual level, with information on:

Labour characteristics Socio-demographic characteristics Time use

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 14 / 44

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Summary Statistics

Year Introduction Digital Television 2009 2010 2011 2012 Gender 0.55 0.56 0.54 0.55 0.55 (0.50) (0.50) (0.50) (0.50) (0.50) Age 48.37 49.26 49.57 48.57 47.66 (17.83) (18.04) (17.71) (17.82) (17.80) Race 0.19 0.10 0.07 0.16 0.27 (0.39) (0.30) (0.25) (0.37) (0.45) Household Size 2.91 2.71 2.64 2.87 3.04 (1.50) (1.36) (1.28) (1.46) (1.59) Highly Qualified 0.35 0.35 0.38 0.33 0.37 (0.48) (0.48) (0.49) (0.47) (0.48) Labour Market Participation 0.61 0.60 0.63 0.62 0.61 (0.49) (0.49) (0.48) (0.49) (0.49) Has a Job 0.56 0.55 0.59 0.56 0.56 (0.50) (0.50) (0.49) (0.50) (0.50) Observations 184,092 15,210 13,569 87,866 67,447

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 15 / 44

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SLIDE 16

1

Introduction

2

Natural Experiment

3

Data

4

Methodology

5

Results

6

Mechanisms

7

Conclusions

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 16 / 44

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Empirical Analysis on Educational Attainment

yi,t = α + βDTj,t + θXi,t + ηj + λt + εi,t (1) yi,t: Dummy equal to 1 if individual i has a job at year t and 0 otherwise DTj,t: Dummy equal to 1 if switchover has occurred by t in region j, where i lives Xi,t: Time-varying covariates at the individual level ηj: Region dummies (40,000 geographical units) λt: Year dummies εi,t: Error term

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 17 / 44

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1

Introduction

2

Natural Experiment

3

Data

4

Methodology

5

Results

6

Mechanisms

7

Conclusions

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 18 / 44

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Baseline Results

Dep Var: Prob Employment DT 0.011*** 0.013*** 0.006** (0.002) (0.003) (0.002) Individual Covariates No No Yes LSOA Dummies No Yes Yes Year Dummies No Yes Yes Observations 185,338 184,092 178,724

* p<0.10, ** p<0.05, *** p<0.01

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 19 / 44

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Robustness Checks

The estimates are robust to:

Checking for pre-trends

Pre-trends

Balancing tests

Balancing Tests

Controlling for regional trends

Regional Trends

Testing for selection

Further Robustness Tests

Using control groups

Further Robustness Tests

Alternative specifications

Further Robustness Tests

Alternative samples

Further Robustness Tests Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 20 / 44

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Heterogeneity

I explore heterogeneity in the baseline results by:

Parental status Gender Further socio-demographic characteristics Type of employment

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 21 / 44

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Heterogeneity: Parental Status

  • .02

.02 .04 .06 Probability of Employment Non-Parent Parent

Panel A: Parental Status

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 22 / 44

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Heterogeneity: Parental Status and Gender

  • .02

.02 .04 .06 Probability of Employment Man Non-Parent Father Woman Non-Parent Mother

Panel B: Parental Status and Gender

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 23 / 44

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Heterogeneity

  • .02

.02 .04 .06 Probability of Employment Not-Co & Not-Pa Not-Co & Pa Co & Not-Pa Co & Pa

Panel A: Cohabitation Status

  • .02

.02 .04 .06 Probability of Employment No Children One Child Two Children >= Three Children

Panel B: Number of Children

  • .02

.02 .04 .06 Probability of Employment No Child Child Age 0-4 Child Age 5-9 Child Age 10-15

Panel C: Age of Children

  • .02

.02 .04 .06 Probability of Employment Male Female

Panel D: Gender

Heterogeneity in Qualification Heterogeneity in Local Services Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 24 / 44

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Type of Employment

  • .02

.02 .04 .06 Prob Self-Employment Man Non-Parent Father Woman Non-Parent Mother

Panel A: Self-Employment

  • .02

.02 .04 .06 Probability of Being Employed Man Non-Parent Father Woman Non-Parent Mother

Panel B: Probability of Being Employed

  • .02

.02 .04 .06 Prob Part-time Employment Man Non-Parent Father Woman Non-Parent Mother

Panel C: Part-time Employment

  • .02

.02 .04 .06 Prob Full-time Employment Man Non-Parent Father Woman Non-Parent Mother

Panel D: Full-time Employment

Number of Hours Worked Work from Home Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 25 / 44

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1

Introduction

2

Natural Experiment

3

Data

4

Methodology

5

Results

6

Mechanisms

7

Conclusions

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 26 / 44

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Mechanism

Children are crucial in the impact of television on labour outcomes I explore possible explanations behind baseline estimates:

Changes in time allocation Television may keep children busy, increasing parents’ labour supply

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 27 / 44

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Mechanism: Parental Status

  • 1
  • .5

.5 N Weekly Hours Housework Non-Parents Parents

Panel A: Parental Status

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 28 / 44

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Mechanism: Parental Status and Gender

  • 1
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.5 N Weekly Hours Housework Men Non-Parents Fathers Women Non-Parents Mothers

Panel B: Parental Status and Gender

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 29 / 44

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Further Evidence: Opinion of Interviewees

Family Suffers if... Who Should Work? Women Women Men & Only Work Full-time Women Men DT

  • 0.025
  • 0.037**

0.014

  • 0.003

(0.016) (0.016) (0.015) (0.016) Individual Yes Yes Yes Yes Covariates LSOA Dummies Yes Yes Yes Yes Year Dummies Yes Yes Yes Yes Observations 54,650 54,659 54,696 54,737

* p<0.10, ** p<0.05, *** p<0.01

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 30 / 44

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Time Allocation

TV Hours Hours Sports Arts Arts Hours

  • f Sleep

Commute Events DT 0.096**

  • 0.057
  • 0.004
  • 0.024
  • 0.009
  • 0.003

(0.040) (0.044) (0.004) (0.037) (0.020) (0.024) Individual Yes Yes Yes Yes Yes Yes Covariates LSOA FE Yes Yes Yes Yes Yes Yes Year FE Yes Yes Yes Yes Yes Yes Observations 46,082 51,998 85,911 34,731 43,491 42,085

* p<0.10, ** p<0.05, *** p<0.01

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 31 / 44

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Time Allocation

Walk Eat Visit Read Other with Friends Leisure Family DT 0.098 0.051

  • 0.006
  • 0.017**
  • 0.016

(0.222) (0.050) (0.007) (0.008) (0.038) Individual Yes Yes Yes Yes Yes Covariates LSOA FE Yes Yes Yes Yes Yes Year FE Yes Yes Yes Yes Yes Observations 50,005 3,782 46,305 59,826 31,498

* p<0.10, ** p<0.05, *** p<0.01

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 32 / 44

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SLIDE 33

1

Introduction

2

Natural Experiment

3

Data

4

Methodology

5

Results

6

Mechanisms

7

Conclusions

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 33 / 44

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SLIDE 34

Conclusions

The digital transition increases labour supply

The impact is driven by mothers The effect is driven by an increase in part-time and self-employment The effect increases with the number of children and for non-cohabiting parents

The presence of children is crucial I explore plausible explanations. The digital transition:

Reduces the amount of housework for mothers, but not for fathers and non-parents Decreases families’ suffering if mothers work full-time Does not change time allocation other than housework

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 34 / 44

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Thank you! Contact e-mail: adrian.nietocastro@liser.lu

Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 35 / 44

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TV Contents

E n t e r t a i n m e n t S p

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t E v e n t s R e l a x a t i

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a r y M a t t e r s N e w s c a s t s O t h e r 20 40 60 80 100 Percentage 2007 2008 2009 2010 2011 2012 2013 2014 Year

Back Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 36 / 44

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Dynamic Impact

  • .1
  • .05

.05 .1 .15 Probability of Employment >36 Prior 25-36 Prior 13-24 Prior 0-12 Prior 1-12 After 13-24 After 25-36 After >36 After Months Relative to Digital Transition

Back Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 37 / 44

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Balancing Tests

Gender Age Siblings High-Qualified Father High-Qual Mother High-Qual White British Father White British Mother White British Born in UK Father Born in UK Mother Born in UK Sexual Orientation Religious Urban Has Moved

  • .05

.05 .1 .15

Panel A: Unconditional Estimates

Gender Age Siblings High-Qualified Father High-Qual Mother High-Qual White British Father White British Mother White British Born in UK Father Born in UK Mother Born in UK Sexual Orientation Religious Urban Has Moved

  • .05

.05 .1 .15

Panel B: Conditional Estimates Back Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 38 / 44

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Further Robustness Tests

Dep Variable: Probability of Employment Never No TV Transmitter 2009–2013 Moved Dummies DT 0.008*** 0.018 0.006** 0.004* (0.003) (0.030) (0.002) (0.003) Individual Covariates Yes Yes Yes Yes LSOA Dummies Yes Yes Yes Yes Year Dummies Yes Yes Yes Yes Transmitter Dummies No No Yes No Observations 140,445 1,852 178,724 150,401

* p<0.10, ** p<0.05, *** p<0.01

Back Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 39 / 44

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Local Labour Markets

Dep Var: Prob of Employment DT 0.013*** 0.010*** 0.011** (0.003) (0.004) (0.004) LSOA Dummies Yes Yes Yes Year Dummies Yes Yes Yes Country*Year Dummies Yes No No GOR*Year Dummies No Yes No LA*Year Dummies No No Yes Observations 184,092 184,092 184,074

* p<0.10, ** p<0.05, *** p<0.01

Back Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 40 / 44

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Heterogeneity in Qualification

  • .02

.02 .04 .06 Probability of Employment LQ & Not-Parent HQ & Not-Parent LQ & Parent HQ & Parent

Back Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 41 / 44

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Heterogeneity in Local Services

Dependent Variable: Probability of Employment Primary Schools Leisure Activities Public Transport High Poor High Poor High Poor DT 0.006 0.004 0.006* 0.005 0.004 0.012*** (0.004) (0.003) (0.003) (0.004) (0.004) (0.004) Individual No Yes Yes Yes Yes Yes Covariates LSOA FE Yes Yes Yes Yes Yes Yes Year FE Yes Yes Yes Yes Yes Yes Observations 45,544 102,448 92,309 71,929 85,690 71,907

Back Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 42 / 44

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SLIDE 43

Number of Hours Worked

  • 1
  • .5

.5 1 Hours Worked Man Non-Parent Father Woman Non-Parent Mother

Hours Worked

Back Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 43 / 44

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SLIDE 44

Work from Home

  • .02

.02 .04 .06 Prob Working from Home Man Non-Parent Father Woman Non-Parent Mother

Work from Home

Back Adri´ an Nieto Castro (LISER) Television and the Labour Supply: Evidence from the Digital Television Transition in the UK CInSt Research Seminar May 14, 2020 44 / 44