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If not computers then what? Returns to computer use in the UK revisited

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Author Info
G. Reza Arabsheibani
Alan Marin

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Abstract

In recent years much attention has been paid to the effect on wages of skill-biased technology, especially the use of computers. Although empirical studies have shown a positive relationship between computer-use and earnings, doubts have been cast on whether this is a causal relationship or merely represents unobserved other factors, which are themselves positively linked to computer usage. This study provides evidence that computers themselves raise wages. Although their impact on wages falls as other controls are included in the regression, it still remains significant whilst the effect of another proxy for unobserved factors becomes insignificant. Furthermore, improvements in computer use have an additional impact on earnings, supporting the productivity interpretation.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 21 (December)
Pages: 2461-2467
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2461-2467

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  1. Haskel, Jonathan E. & Slaughter, Matthew J., 2002. "Does the sector bias of skill-biased technical change explain changing skill premia?," European Economic Review, Elsevier, vol. 46(10), pages 1757-1783, December. [Downloadable!] (restricted)
  2. 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)
  3. 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)
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