Money for Nothing and Your Chips for Free? The Anatomy of the PC Wage Differential
AbstractThe role of the computer at the workplace is examined in determining the wage structure in Germany. It is shown that the wage premium attributed to using a computer at work using cross-sectional results for 1997 is 7%. To control for unmeasured individual effects, we use a random effects and fixed effects estimator. The coefficient for computer usage at the workplace did NOT remain stable and although just barely significant, was reduced to mere 1% with individual fixed effects. We conclude that there are no computer usage wage differentials worth speaking of, once one controls adequately for unobserved individual heterogeneity.
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society World Congress 2000 Contributed Papers with number 0859.
Date of creation: 01 Aug 2000
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- John P. Haisken-DeNew & Christoph M. Schmidt, 1999. "Money for Nothing and Your Chips for Free?: The Anatomy of the PC Wage Differential," Discussion Papers of DIW Berlin 178, DIW Berlin, German Institute for Economic Research.
- Haisken-DeNew, John P. & Schmidt, Christoph M., 1999. "Money for Nothing and Your Chips for Free? The Anatomy of the PC Wage Differential," IZA Discussion Papers 86, Institute for the Study of Labor (IZA).
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
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