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Computer Use and the Wage Structure in Austria

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Author Info
Hofer, Helmut (Department of Economics and Finance, Institute for Advanced Studies, Vienna)
Riedel, Monika (Department of Economics and Finance, Institute for Advanced Studies, Vienna)
Abstract

In this paper we examine the relationship between computer premium and job position in Austria. We estimate cross-section wage equations and control for selectivity of computer use via a treatment effects model. We find that the size of the wage effect attributed to computer use varies significantly between job hierarchies. Persons in higher positions receive relatively lower rewards for computer use than workers at lower hierarchy levels. Overall we find that computerisation increased wage inequality in Austria. However, hierarchy-related differences in the relative computer premium in Austria might moderate the effects of computer use on the wage distribution.

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File URL: http://www.ihs.ac.at/publications/eco/es-147.pdf
File Format: application/pdf
File Function: First version, 2003
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Publisher Info
Paper provided by Institute for Advanced Studies in its series Economics Series with number 147.

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Length: 17 pages
Date of creation: Nov 2003
Date of revision:
Handle: RePEc:ihs:ihsesp:147

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Related research
Keywords: Technological change; Computer wage premium; Wage inequality;

Other versions of this item:

Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Lindbeck, Assar & Snower, Dennis J, 2000. "Multitask Learning and the Reorganization of Work: From Tayloristic to Holistic Organization," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 353-76, July. [Downloadable!] (restricted)
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  2. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 339-376, February. [Downloadable!] (restricted)
    Other versions:
  3. Haskel, Jonathan & Heden, Ylva, 1999. "Computers and the Demand for Skilled Labour: Industry- and Establishment-Level Panel Evidence for the UK," Economic Journal, Royal Economic Society, vol. 109(454), pages C68-79, March. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed The Labor Market?," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1169-1213, November. [Downloadable!] (restricted)
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  6. John P. Haisken-DeNew & Christoph M. Schmidt, 2000. "Money for Nothing and Your Chips for Free? The Anatomy of the PC Wage Differential," Econometric Society World Congress 2000 Contributed Papers 0859, Econometric Society. [Downloadable!]
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  7. Borghans,Lex & Weel,Bas,ter, 2001. "Computers, Skills and Wages," Research Memoranda 019, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  8. Bresnahan, Timothy F, 1999. "Computerisation and Wage Dispersion: An Analytical Reinterpretation," Economic Journal, Royal Economic Society, vol. 109(456), pages F390-415, June. [Downloadable!] (restricted)
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  9. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October. [Downloadable!]
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  10. Acemoglu, Daron, 2002. "Directed Technical Change," Review of Economic Studies, Blackwell Publishing, vol. 69(4), pages 781-809, October.
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  11. Winter-Ebmer, Rudolf & Zweimuller, Josef, 1997. "Unequal Assignment and Unequal Promotion in Job Ladders," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 43-71, January. [Downloadable!] (restricted)
  12. Borghans,Lex & Weel,Bas,ter, 2003. "The Diffusion of Computers and the Distribution of Wages," Research Memoranda 003, Maastricht : ROA, Research Centre for Education and the Labour Market. [Downloadable!]
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  13. Edward N. Wolff, 2002. "Productivity, Computerization, and Skill Change," NBER Working Papers 8743, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Martin Falk, 2004. "Employment of High-skilled Labour, Computer Investment and Innovation Expenditures. Speed-up of Technological Change," WIFO Monatsberichte (monthly reports), WIFO, vol. 77(3), pages 213-222, March. [Downloadable!] (restricted)
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