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Computer knowledge and earnings: evidence for Australia

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  • Jeff Borland
  • Joseph Hirschberg
  • Jenny Lye

Abstract

This paper uses data on wage and salary workers in Australia in 1993 to examine the relation between computer knowledge and earnings. A unique feature of the data set that is used is detailed information on the types and levels of computer skills possessed by individual workers. The main objectives of the study are to contribute to understanding the magnitude and sources of the relation between computer knowledge and earnings. Similar to existing research it is found that there is a large and significant return to computer knowledge, but that the magnitude of the return is substantially reduced in regressions that include detailed occupation controls. Using the detailed information on workers' computer skills the main finding is that earnings are significantly positively related to the number of types of skills and average level of skills possessed by a worker.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 17 ()
Pages: 1979-1993

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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1979-1993

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  1. Lindbeck, Assar & Snower, Dennis J, 1996. "Reorganization of Firms and Labor-Market Inequality," American Economic Review, American Economic Association, vol. 86(2), pages 315-21, May.
  2. Ann P. Bartel & Nachum Sicherman, 1999. "Technological Change and Wages: An Interindustry Analysis," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 285-325, April.
  3. David Card & Francis Kramarz & Thomas Lemieux, 1999. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 843-877, August.
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  6. Steven G. Allen, 1996. "Technology and the Wage Structure," NBER Working Papers 5534, National Bureau of Economic Research, Inc.
  7. Miller, Paul & Mulvey, Charles, 1997. "Computer Skills and Wages," Australian Economic Papers, Wiley Blackwell, vol. 36(68), pages 106-13, June.
  8. Borland, J. & Hirschberg, J. & Lye, J., 1998. "Data Reduction of Discrete Responses: An Application of Cluster Analysis," Department of Economics - Working Papers Series 664, The University of Melbourne.
  9. Levy, Frank & Murnane, Richard J, 1996. "With What Skills Are Computers a Complement?," American Economic Review, American Economic Association, vol. 86(2), pages 258-62, May.
  10. 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.
  11. 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.
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Cited by:
  1. Bruce Chapman & James Jordan & Ken Olivier & John Quiggin, 2000. "The Unemployment Trap Meets the Age-Earning Profile," CEPR Discussion Papers 415, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  2. Jenny N. Lye & Joseph G. Hirschberg, 2002. "Tests of Inference for Dummy Variables in Regressions with Logarithmic Transformed Dependent Variables," Department of Economics - Working Papers Series 852, The University of Melbourne.
  3. Vinod Mishra & Russell Smyth, 2012. "Technological Change and Wages in China: Evidence From Matched Employer-Employee Data," Development Research Unit Working Paper Series 28-12, Monash University, Department of Economics.
  4. Bruce Chapman & Cezary Kapuscinski, 2000. "Avoiding Recessions and Australian Long-Term Unemployment," CEPR Discussion Papers 418, Centre for Economic Policy Research, Research School of Economics, Australian National University.

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