Does High-Speed Internet (Broadband) Technology Affect the Mental Health of Older Adults?
(Presentations- MEA ’23, American University-’23, SEA ’23, APPAM ’23)
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Abstract: Recent research has shown the negative effects of social networks on younger people’s mental health. Yet, we do not know whether the same effects are present across the population, particularly for older adults, who are especially vulnerable to certain mental health conditions. I estimate the effect of broadband availability on the mental health of older adults (aged 50+) in the United States, using individual panel data and exploiting the census tract-level staggered rollout of broadband from 2010 to 2018 in the latest difference-in-differences (DID) framework. In contrast to the literature that finds harmful effects of the internet among younger populations, my results show that broadband rollout significantly reduces depression symptoms by 5.7% among older adults. The primary mechanisms driving these positive effects include an increase in self-use of the internet and virtual social connectedness and a decline in social isolation and loneliness. Improved health literacy and technological efficiency (telehealth) also partly drive the results but do not affect self-reported physical health or employment. Rural dwellers and women are the biggest beneficiaries of broadband’s positive effects on mental health. I also find some evidence of the spatial spillover effects. These positive estimates are comparable with other major life events known to negatively affect the mental health of older adults, such as job loss, recession, and the death of a spouse. This work highlights broadband’s unmeasured additional benefits to public investments, given the recent allocation of over $65 billion to broadband expansion. A back-of-the-envelope calculation suggests that broadband expansion may reduce the cost of excess Medicare spending by about $5 billion due to major depressive symptoms and social isolation among older adults.