The Returns to Computer Use Revisited, Again
AbstractUsing 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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Bibliographic InfoPaper provided by CIRPEE in its series Cahiers de recherche with number 0614.
Date of creation: 2006
Date of revision:
Wage determination; Computers; Mixed models; Linked employer-employee data;
Other versions of this item:
- Benoit Dostie & Rajshri Jayaramanz & Mathieu Trépanier, 2006. "The Returns to Computer Use Revisited, Again," Cahiers de recherche 06-03, HEC Montréal, Institut d'économie appliquée.
- Dostie, Benoit & Jayaraman, Rajshri & Trépanier, Mathieu, 2006. "The Returns to Computer Use Revisited, Again," IZA Discussion Papers 2080, Institute for the Study of Labor (IZA).
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-05-13 (All new papers)
- NEP-BEC-2006-05-13 (Business Economics)
- NEP-LAB-2006-05-13 (Labour Economics)
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