New Technologies, Wages and Worker Selection

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New Technologies, Wages and Worker Selection

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Entorf, Horst
Gollac, Michel
Kramarz, Francis

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Abstract

We study the impact of new technologies (NT) on wages and employment using a unique panel that matches data on individuals and on their firms. As found in the United States (Krueger (1993)), we show that computer users are better paid than non-users (between 15% and 20% more). But we also show that these workers were already better compensated before the introduction of the NTs. Total returns to computer use amount to 2%. Even when possible measurement errors are taken into account, total returns cannot exceed 4%, which is far from the cross-section estimates. Furthermore, computer users are protected from job losses as long as bad business conditions do not last too long. This result holds even after controlling for possible selection biases.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1761.

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Date of creation: Dec 1997
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Handle: RePEc:cpr:ceprdp:1761

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Article
- Entorf, Horst & Gollac, Michel & Kramarz, Francis, 1999. "New Technologies, Wages, and Worker Selection," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 464-91, July. [Downloadable!] (restricted)
Paper
- Entorf, H. & Gollac, M. & Kramarz, F., 1997. "New Technologies, Wages and Worker Selection," Papers 9725, Institut National de la Statistique et des Etudes Economiques-.

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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