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Are computer skills the new basic skills? The returns to computer, writing and math skills in Britain

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Author Info

  • Borghans,Lex
  • Weel,Bas,ter

    (MERIT)

Abstract

The large increase in computer use has raised the question whether people have to betaught computer skills before entering the labour market. Using data from the 1997 SkillsSurvey of the Employed British Workforce, we argue that neither the increase in computer use nor the fact that particularly higher skilled workers use a computer provides evidence that computer skills are valuable. We compare computer skills with writing and math skills and test whether wages vary with computer skills, given the specific use that is made ofcomputers. The regression results show that while the ability to write documents and to carry out mathematical analyses yields significant labour-market returns, the ability to effectively use a computer has no substantial impact on wages. These estimates suggest that writing and math can be regarded as basic skills, but that the higher wages of computer users are unrelated to computer skills.

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Bibliographic Info

Paper provided by Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology in its series Research Memoranda with number 005.

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Date of creation: 2003
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Handle: RePEc:dgr:umamer:2003005

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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm

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Keywords: labour economics ;

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References

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  1. Lex Borghans & Bas ter Weel, 2011. "Computers, skills and wages," Applied Economics, Taylor and Francis Journals, vol. 43(29), pages 4607-4622.
  2. Entorf, Horst & Gollac, Michel & Kramarz, Francis, 1997. "New Technologies, Wages and Worker Selection," CEPR Discussion Papers 1761, C.E.P.R. Discussion Papers.
  3. Borghans, Lex & Weel, Bas ter, 2002. "Do older workers have more trouble using a computer than younger workers?," Open Access publications from Maastricht University urn:nbn:nl:ui:27-12772, Maastricht University.
  4. John E. DiNardo & Jorn-Steffen Pischke, 1996. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," NBER Working Papers 5606, National Bureau of Economic Research, Inc.
  5. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
  6. 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.
  7. Chennells, Lucy & Van Reenen, John, 1997. "Technical Change and Earnings in British Establishments," Economica, London School of Economics and Political Science, vol. 64(256), pages 587-604, November.
  8. Brian D. Bell, . "Skill-Biased Technical Change and Wages: Evidence from a Longitudinal Data Se," Economics Papers W25., Economics Group, Nuffield College, University of Oxford.
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Citations

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Cited by:
  1. Lex Borghans & Hans Heijke, 2005. "The production and use of human capital: Introduction," Education Economics, Taylor and Francis Journals, vol. 13(2), pages 133-142.
  2. Borghans, Lex & ter Weel, Bas, 2003. "What Happens When Agent T Gets a Computer? The Labor Market Impact of Cost Efficient Computer Adoption," IZA Discussion Papers 792, Institute for the Study of Labor (IZA).
  3. Ponzo, Michela, 2010. "Does the Way in which Students Use Computers Matter for their Performance?," MPRA Paper 25483, University Library of Munich, Germany.
  4. Borghans, Lex & Weel, Bas ter, 2007. "The diffusion of computers and the distribution of wages," Open Access publications from Maastricht University urn:nbn:nl:ui:27-12747, Maastricht University.
  5. Chiswick, Barry R. & Miller, Paul W., 2005. "Computer Skills, Destination Language Proficiency and the Earnings of Natives and Immigrants," IZA Discussion Papers 1755, Institute for the Study of Labor (IZA).
  6. Grip, Andries de & Sieben, Inge, 2005. "The effects of human resource management on small firms' productivity and employees' wages," Open Access publications from Maastricht University urn:nbn:nl:ui:27-13262, Maastricht University.
  7. Thomas Fuchs & Ludger Wossmann, 2004. "Computers and student learning: bivariate and multivariate evidence on the availability and use of computers at home and at school," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 47(3-4), pages 359-386.
  8. Ng, Ying Chu, 2006. "Levels of computer self-efficacy, computer use and earnings in China," Economics Letters, Elsevier, vol. 90(3), pages 427-432, March.
  9. Thomas Fuchs & Ludger Wößmann, 2005. "Computer können das Lernen behindern," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 58(18), pages 16-23, 09.
  10. Ganna Vakhitova & Christopher R. Bollinger, 2011. "Labor Market Return to Computer Skills: Using Microsoft Certification to Measure Computer Skills," Discussion Papers 46, Kyiv School of Economics.

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