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Information Technology and the Demand for Educated Workers: Disentangling the Impacts of Adoption versus Use

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Author Info

  • Hyunbae Chun

    (Queens College, City University of New York)

Abstract

This paper examines the effect of information technology (IT) on the relative demand for educated workers in U.S. industries from 1960 to 1996. After decomposing this effect into IT use and adoption, I find that the use of IT is complementary with educated workers, and that educated workers have a comparative advantage in the adoption of IT. In total, IT use and adoption effects account for almost 40% of the acceleration in demand for educated workers since 1970. Moreover, the adoption of IT explains about one-third of the total IT effect on the acceleration in skill upgrading in the 1970s. © 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 85 (2003)
Issue (Month): 1 (February)
Pages: 1-8

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Handle: RePEc:tpr:restat:v:85:y:2003:i:1:p:1-8

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Web page: http://mitpress.mit.edu/journals/

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Cited by:
  1. Stefanie Haller & Iulia Traistaru-Siedschlag, 2007. "The Adoption of ICT: Firm-Level Evidence from Irish Manufacturing Industries," Papers WP204, Economic and Social Research Institute (ESRI).
  2. Ketteni, Elena & Mamuneas, Theofanis & Stengos, Thanasis, 2011. "The Effect Of Information Technology And Human Capital On Economic Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 15(05), pages 595-615, November.
  3. Haller, Stefanie & Siedschlag, Iulia, 2008. "Determinants of ICT Adoption: Evidence from Firm-Level Data," Papers DYNREG29, Economic and Social Research Institute (ESRI).
  4. Borghans, Lex & ter Weel, Bas, 2007. "The diffusion of computers and the distribution of wages," European Economic Review, Elsevier, vol. 51(3), pages 715-748, April.
  5. Savvidou, Eleni, 2003. "The Relationship Between Skilled Labor and Technical Change," Working Paper Series 2003:27, Uppsala University, Department of Economics.
  6. O'Mahony, Mary & Peng, Fei, 2009. "Skill bias, age and organizational change," MPRA Paper 38767, University Library of Munich, Germany.
  7. O'Mahony, Mary & Robinson, Catherine & Vecchi, Michela, 2008. "The impact of ICT on the demand for skilled labour: A cross-country comparison," Labour Economics, Elsevier, vol. 15(6), pages 1435-1450, December.
  8. Cindy Zoghi & Sabrina Wulff Pabilonia, 2006. "Which Workers Gain Upon Adopting a Computer?," Working Papers 395, U.S. Bureau of Labor Statistics.
  9. Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2005. "The Effects of Technical Change on Labor Market Inequalities," Working Papers 89, Princeton University, Department of Economics, Center for Economic Policy Studies..
  10. Chris Forman & Avi Goldfarb & Shane Greenstein, 2003. "How did Location Affect Adoption of the Commercial Internet? Global Village, Urban Density, and Industry Composition," NBER Working Papers 9979, National Bureau of Economic Research, Inc.
  11. Hempell, Thomas, 2003. "Do Computers Call for Training? Firm-level Evidence on Complementarities Between ICT and Human Capital Investments," ZEW Discussion Papers 03-20, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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