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Technology, Computers and Wages: Evidence from a Developing Economy

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Author Info
Chris N. Sakellariou () (Nanyang University)
Harry A. Patrinos (The World Bank)

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Abstract

Increasing returns to schooling are documented for developed and some developing countries. The growing demand for skills is associated with recent technological developments, including the introduction of computers in the workplace. Research in developed countries documents a premium for computer use. However, there is recent evidence suggesting that computer skills by themselves do not command a wage premium. This paper reviews the literature and uses data from a survey of university graduates in Vietnam. The results support the unobserved heterogeneity explanation for computer wage premiums. The results suggest that computers may make the productive workers even more productive.

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Publisher Info
Article provided by Editions du DULBEA, Université libre de Bruxelles, Department of Applied Economics (DULBEA) in its journal Brussels Economic Journal/Cahiers Economiques de Bruxelles.

Volume (Year): 47 (2004)
Issue (Month): 3-4 ()
Pages: 543-560
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Handle: RePEc:bxr:bxrceb:y:2004:v:47:i:3-4:p:543-560

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Related research
Keywords: Wages; earnings; computers.;

Other versions of this item:

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Tan, Hong & Batra, Geeta, 1997. "Technology and Firm Size-Wage Differentials in Colombia, Mexico, and Taiwan (China)," World Bank Economic Review, Oxford University Press, vol. 11(1), pages 59-83, January.
  2. repec:fth:prinin:439 is not listed on IDEAS
  3. Chris Sakellariou, 2003. "Rates of Return to Investments in Formal and Technical/Vocational Education in Singapore," Education Economics, Taylor and Francis Journals, vol. 11(1), pages 73-87, January. [Downloadable!] (restricted)
  4. Borghans, Lex & ter Weel, Bas, 2003. "Do We Need Computer Skills to Use a Computer? Evidence from Britain," IZA Discussion Papers 685, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Choi, K.S., 1993. "Technological Change and Educational Wage Differentials in Korea," Papers 698, Yale - Economic Growth Center.
  6. Entorf, Horst & Gollac, Michel & Kramarz, Francis, 1999. "New Technologies, Wages, and Worker Selection," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 464-91, July. [Downloadable!] (restricted)
    Other versions:
  7. Entorf, Horst & Kramarz, Francis, 1997. "Does unmeasured ability explain the higher wages of new technology workers?," European Economic Review, Elsevier, vol. 41(8), pages 1489-1509, August. [Downloadable!] (restricted)
  8. David H. Autor & Frank Levy & Richard Murnane, 2000. "Upstairs, Downstairs: Computer-Skill Complementarity and Computer-Labor Substitution on Two Floors of a Large Bank," NBER Working Papers 7890, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. DiNardo, John E & Pischke, Jorn-Steffen, 1997. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 291-303, February.
    Other versions:
  10. John P. Haisken-DeNew & Christoph M. Schmidt, 2000. "Money for Nothing and Your Chips for Free? The Anatomy of the PC Wage Differential," Econometric Society World Congress 2000 Contributed Papers 0859, Econometric Society. [Downloadable!]
    Other versions:
  11. Drolet, Marie & Morissette, René, 1998. "Computers, Fax Machines and Wages in Canada: What Really Matters?," Analytical Studies Branch Research Paper Series 1998126e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  12. Borghans,Lex & Weel,Bas,ter, 2001. "Computers, Skills and Wages," Research Memoranda 019, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
    Other versions:
  13. Bresnahan, Timothy F, 1999. "Computerisation and Wage Dispersion: An Analytical Reinterpretation," Economic Journal, Royal Economic Society, vol. 109(456), pages F390-415, June. [Downloadable!] (restricted)
    Other versions:
  14. Borghans L. & Weel B. ter, 2000. "How computerizaton changes the UK Labour Market: The Facts viewed from a new Perspective," Working Papers 010, Maastricht : ROA,Research Centre for Education and the Labour Market. [Downloadable!]
    Other versions:
  15. Donald J. Robbins, 1996. "Evidence on Trade and Wages in the Developing World," OECD Development Centre Working Papers 119, OECD, Development Centre. [Downloadable!]
  16. Harry A. Krashinsky, 2000. "Do Marital Status and Computer Usage Really Change the Wage Structure? Evidence from a Sample of Twins," Working Papers 818, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  17. Oosterbeek, Hessel, 1997. "Returns from computer use: A simple test on the productivity interpretation," Economics Letters, Elsevier, vol. 55(2), pages 273-277, August. [Downloadable!] (restricted)
  18. Borghans,Lex & Weel,Bas,ter, 2001. "What happens when agent T gets a computer?," Research Memoranda 017, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
    Other versions:
  19. Francis Green, 1998. "The Value of Skills," Studies in Economics 9819, Department of Economics, University of Kent. [Downloadable!]
  20. Michael J. Handel, 1999. "Computers and the Wage Structure," Economics Working Paper Archive 285, Levy Economics Institute, The. [Downloadable!]
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