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Computer Adoption and Returns in Transition

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  • Kuku, Yemisi
  • Orazem, Peter
  • Singh, Rajesh

Abstract

Across nine transition economies, it is the young, educated, English-speaking workers with the best access to local telecommunications infrastructures that work with computers. These workers earn about 25% more than do workers of comparable observable skills who do not use computers. Controlling for likely simultaneity between computer use at work and labor market earnings makes the apparent returns to computer use disappear. These results are corroborated using Russian longitudinal data on earnings and computer use on the job. High costs of computer use in transition economies suppress wages that firms can pay their workers who use computers.

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File URL: http://www.econ.iastate.edu/sites/default/files/publications/papers/p5298-2004-10-10.pdf
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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12195.

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Date of creation: 10 Oct 2004
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Publication status: Published in Economics of Transition, March 2007, vol. 15, pp. 33-56
Handle: RePEc:isu:genres:12195

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
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Web page: http://www.econ.iastate.edu
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  1. Orazem, Peter & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," Staff General Research Papers 5270, Iowa State University, Department of Economics.
  2. Chinn, Menzie David & Fairlie, Robert W, 2004. "The Determinants of the Global Digital Divide: A Cross-Country Analysis of Computer and Internet Penetration," Santa Cruz Department of Economics, Working Paper Series qt76x9876q, Department of Economics, UC Santa Cruz.
  3. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," NBER Working Papers 5956, National Bureau of Economic Research, Inc.
  4. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
  5. Harry A. Krashinsky, 2004. "Do Marital Status and Computer Usage Really Change the Wage Structure?," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
  6. Huffman, Wallace & Mercier, S., 1991. "Joint Adoption of Microcomputer Technologies: An Analysis of Farmers' Decisions," Staff General Research Papers 10989, Iowa State University, Department of Economics.
  7. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
  8. Timothy Dunne & Lucia Foster & John Haltiwanger & Kenneth R. Troske, 2004. "Wage and Productivity Dispersion in United States Manufacturing: The Role of Computer Investment," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 397-430, April.
  9. Easterly, William & Fischer, Stanley, 1995. "The Soviet Economic Decline," World Bank Economic Review, World Bank Group, vol. 9(3), pages 341-71, September.
  10. Liu, Jin-Tan & Tsou, Meng-Wen & Hammitt, James K., 2004. "Computer use and wages: evidence from Taiwan," Economics Letters, Elsevier, vol. 82(1), pages 43-51, January.
  11. Oosterbeek, Hessel, 1997. "Returns from computer use: A simple test on the productivity interpretation," Economics Letters, Elsevier, vol. 55(2), pages 273-277, August.
  12. Abdulai, Awudu & Huffman, Wallace, 2007. "The Diffusion of New Agricultural Technologies: The Case of Crossbreeding Technology in Tanzania," Staff General Research Papers 12785, Iowa State University, Department of Economics.
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Cited by:
  1. Ono, Hiroshi & Zavodny, Madeline, 2007. "Immigrants, English Ability and the Digital Divide," IZA Discussion Papers 3124, Institute for the Study of Labor (IZA).
  2. Vinod Mishra & Russell Smyth, 2012. "Technological Change and Wages in China: Evidence From Matched Employer-Employee Data," Development Research Unit Working Paper Series 28-12, Monash University, Department of Economics.

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