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Technology, computers and wages: evidence from a developing economy

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  • Chris N. Sakellariou
  • Harry A. Patrinos

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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Bibliographic Info

Article provided by ULB -- Universite Libre de Bruxelles in its journal Brussels economic review.

Volume (Year): 47 (2004)
Issue (Month): 3-4 ()
Pages: 543

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Handle: RePEc:bxr:bxrceb:y:2004:v:47:i:3-4:p:543-560

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Keywords: Wages; earnings; computers;

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References

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  1. Dinardo, J.E. & Pischke, J.S., 1996. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 96-12, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. 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).
  3. Francis Green, 1998. "The Value of Skills," Studies in Economics, Department of Economics, University of Kent 9819, Department of Economics, University of Kent.
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  8. Entorf, Horst & Gollac, Michel & Kramarz, Francis, 1997. "New Technologies, Wages and Worker Selection," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1761, C.E.P.R. Discussion Papers.
  9. Bresnahan, Timothy F, 1999. "Computerisation and Wage Dispersion: An Analytical Reinterpretation," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 109(456), pages F390-415, June.
  10. Oosterbeek, Hessel, 1997. "Returns from computer use: A simple test on the productivity interpretation," Economics Letters, Elsevier, Elsevier, vol. 55(2), pages 273-277, August.
  11. Borgmans,Lex & Weel,Bas,ter, 2000. "How computerization changes the UK labour market: The facts viewed from a new perspective," Research Memorandum, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT) 025, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  12. Drolet, Marie & Morissette, Rene, 1998. "Computers, Fax Machines and Wages in Canada: What Really Matters?," Analytical Studies Branch Research Paper Series 1998126e, Statistics Canada, Analytical Studies Branch.
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  14. Kevin T. Reilly, 1995. "Human Capital and Information: The Employer Size-Wage Effect," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 1-18.
  15. Borghans L. & Weel B. ter, 2000. "How computerizaton changes the UK Labour Market: The Facts viewed from a new Perspective," ROA Working Paper 010, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  16. Donald J. Robbins, 1996. "Evidence on Trade and Wages in the Developing World," OECD Development Centre Working Papers 119, OECD Publishing.
  17. Borghans,L. & Weel,B.,ter, 2001. "Computers, Skills and Wages," ROA Research Memorandum, Maastricht University, Research Centre for Education and the Labour Market (ROA) 005, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  18. repec:fth:prinin:439 is not listed on IDEAS
  19. Chris Sakellariou, 2003. "Rates of Return to Investments in Formal and Technical/Vocational Education in Singapore," Education Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 11(1), pages 73-87.
  20. Tan, Hong & Batra, Geeta, 1997. "Technology and Firm Size-Wage Differentials in Colombia, Mexico, and Taiwan (China)," World Bank Economic Review, World Bank Group, World Bank Group, vol. 11(1), pages 59-83, January.
  21. 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.
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Cited by:
  1. Oosterbeek, Hessel & Ponce, Juan, 2011. "The impact of computer use on earnings in a developing country: Evidence from Ecuador," Labour Economics, Elsevier, Elsevier, vol. 18(4), pages 434-440, August.

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