Does The Internet Enhance State Capacity To Alleviate Distress

We ask whether access to the internet increases participation in a workfare program in Indian villages, especially during a crisis. We exploit the exodus of migrant workers from cities to rural areas during the pandemic and phase-wise rollout of the internet for identification. Comparing neighboring blocks with and without the internet in a differences-in-differences setting, we find that access to the internet increases the demand for workfare by 4.2%. In areas more impacted by the pandemic, the demand increases by an additional 7.5%. Thus, we show that the digital infrastructure could play a positive role in alleviating distress during crises.