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The Returns to Computer Use Revisited, Again

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  • Benoit Dostie

    ()
    (IEA, HEC Montréal)

  • Rajshri Jayaramanz
  • Mathieu Trépanier

Abstract

Using North American data, we revisit the question first broached by Krueger (1993) and re-examined by DiNardo and Pischke (1997) of whether there exists a real wage differential associated with computer use. Employing a mixed effects model to correct for both worker and workplace unobserved heterogeneity using matched employer-employee panel data, we find that computer users enjoy an almost 4 per cent wage premium over non-users. Failure to correct for the worker selection effect leads to a more than twofold overestimate of this premium, as does failure to correct for workplace unobserved heterogeneity.

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File URL: http://www.hec.ca/iea/cahiers/2006/iea0603_bd.pdf
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Bibliographic Info

Paper provided by HEC Montréal, Institut d'économie appliquée in its series Cahiers de recherche with number 06-03.

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Length: 29 pages
Date of creation: Apr 2006
Date of revision:
Handle: RePEc:iea:carech:0603

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Postal: Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7
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Keywords: Wage determination; computers; mixed models; linked employer-employee data;

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