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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.

Suggested Citation

  • Kuku, Yemisi & Orazem, Peter & Singh, Rajesh, 2004. "Computer Adoption and Returns in Transition," Staff General Research Papers Archive 12195, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:12195
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    More about this item

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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