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The Returns to Computer Use Revisited, Again

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  • Benoit Dostie
  • Rajshri Jayaraman
  • 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.cirpee.org/fileadmin/documents/Cahiers_2006/CIRPEE06-14.pdf
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Bibliographic Info

Paper provided by CIRPEE in its series Cahiers de recherche with number 0614.

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Date of creation: 2006
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Handle: RePEc:lvl:lacicr:0614

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Keywords: Wage determination; Computers; Mixed models; Linked employer-employee data;

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