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Computer use and earnings in Britain

Author

Listed:
  • Makepeace, Gerry

    (Cardiff University)

  • Peter Dolton

Abstract

This paper estimates various models of the effect of computer use on earnings using recent NCDS data. The cross-section estimates are large and significant while the standard fixed effects estimates are small or insignificant. The panel estimates change considerably once we allow the coefficients to differ across individuals. Indeed, conditional on assumptions about when individuals use computers, conventional panel estimates may not identify the crucial parameters and cross-sectional methods may be needed. We conclude that there was a premium associated with computer use for some individuals in the UK which we attribute to better capital equipment.

Suggested Citation

  • Makepeace, Gerry & Peter Dolton, 2003. "Computer use and earnings in Britain," Royal Economic Society Annual Conference 2003 146, Royal Economic Society.
    • Handle: RePEc:ecj:ac2003:146
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    Keywords

    earnings; ICT; computers;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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