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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 Function: First version, 2003
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Bibliographic 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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Postal: Institute for Advanced Studies - Library, Stumpergasse 56, A-1060 Vienna, Austria

Related research

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

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References

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  1. 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.
  2. 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.
  3. Daron Acemoglu, 2002. "Directed Technical Change," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 781-809.
  4. 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.
  5. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
  6. 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.
  7. 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.
  8. 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.
  9. Edward N. Wolff, 2002. "Productivity, computerization, and skill change," Economic Review, Federal Reserve Bank of Atlanta, issue Q3, pages 63-87.
  10. 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).
  11. Bresnahan, Timothy F, 1999. "Computerisation and Wage Dispersion: An Analytical Reinterpretation," Economic Journal, Royal Economic Society, vol. 109(456), pages F390-415, June.
  12. 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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Cited by:
  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.

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