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The Impact Of New Technologies On Wages: Lessons From Matching Panels On Employees And On Their Firms

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Author Info

  • Horst Entorf
  • Francis Kramarz

Abstract

We study the impact on New Technologies (NT) on wages using a panel that matches data on individuals and on their firms. In his article on the same topic, Krueger (1993) did not give a definitive answer to the following question: if workers who use NT are better paid, is it because they are abler or because NT increases their productivity. We try to provide an answer to this question. Comparing cross-section estimates and individual fixed-effect estimates, we show that computer-based new technologies are used by abler workers. These workers learn and become more productive when they get more experienced with these NT. In terns of wage differentials, the introduction of computer-based NT contributes to a small increase. The use of firm-level data does not modify these conclusions.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/10438599800000004
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 5 (1998)
Issue (Month): 2-4 ()
Pages: 165-198

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Handle: RePEc:taf:ecinnt:v:5:y:1998:i:2-4:p:165-198

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Related research

Keywords: Wage; New Technologies; Computers JEL Classification: J31; 533; 033;

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Cited by:
  1. Meng, Xin & Junankar, Pramod N. (Raja) & Kapuscinski, Cezary A., 2004. "Job Mobility along the Technological Ladder: A Case Study of Australia," IZA Discussion Papers 1169, Institute for the Study of Labor (IZA).
  2. Sid Durbin, 2004. "Review of Workplace Skills, Technology Adoption and Firm Productivity: A Review," Treasury Working Paper Series 04/16, New Zealand Treasury.
  3. Scott Stern, 1999. "Do Scientists Pay to Be Scientists?," NBER Working Papers 7410, National Bureau of Economic Research, Inc.
  4. Bauer, Thomas K. & Bender, Stefan, 2001. "Flexible Work Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 353, Institute for the Study of Labor (IZA).
  5. Spitz, Alexandra, 2004. "Using Methods of Treatment Evaluation to Estimate the Wage Effect of IT Usage," ZEW Discussion Papers 04-67, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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