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How Computers Have Changed the Wage Structure: Evidence From Microdata, 1984-1989

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Alan B. Krueger

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Abstract

This paper examines whether employees who use a computer at work earn a higher wage rate than otherwise similar workers who do not use a computer at work. The analysis primarily relies on data from the Current Population Survey and the High School and Beyond Survey. A variety of statistical models are estimated to try to correct for unobserved variables that might be correlated with both job-related computer use and earnings. The estimates suggest that workers who use computers on their job earn roughly a 10 to 15 percent higher wage rate. In addition, the estimates suggest that the expansion in computer use in the l980s can account for between one-third and one-half of the observed increase in the rate of return to education, Finally, occupations that experienced greater growth in computer use between 1984 and 1989 also experienced above average wage growth.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3858.

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Date of creation: Oct 1991
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Publication status: published as The Quarterly JOurnal of Economics, 108, no. 1, February 1993, pp. 33-61
Handle: RePEc:nbr:nberwo:3858

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. McKinley L. Blackburn & David E. Bloom & Richard B. Freeman, 1989. "The Declining Economic Position of Less-Skilled American Males," NBER Working Papers 3186, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Lawrence F. Katz & Alan B. Krueger, 1991. "Changes in the Structure of Wages in the Public and Private Sectors," NBER Working Papers 3667, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. David Card, 1992. "The Effect of Unions on the Distribution of Wages: Redistribution or Relabelling?," NBER Working Papers 4195, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Katz, Lawrence F. & Revenga, Ana L., 1989. "Changes in the structure of wages: The United States vs Japan," Journal of the Japanese and International Economies, Elsevier, vol. 3(4), pages 522-553, December. [Downloadable!] (restricted)
  5. Jacob Mincer, 1991. "Human Capital, Technology, and the Wage Structure: What Do Time Series Show?," NBER Working Papers 3581, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126. [Downloadable!] (restricted)
  7. Steven G. Allen, 1996. "Technology and the Wage Structure," NBER Working Papers 5534, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
  9. repec:fth:coluec:452 is not listed on IDEAS
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