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Technology, computers, and wages : evidence from a developing economy

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Author Info
Sakellariou, Chris N.
Patrinos, Harry A.

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Abstract

Increasing returns to schooling and rising inequality are well documented for industrial countries and for some developing countries. The growing demand for skills is associated with recent technological developments. The authors argue that computers in the workplace represent one manifestation of these changes. Research in the United States and industrial countries documents a premium for computer use. But there is recent evidence suggesting that computer skills by themselves do not command a wage premium. The authors review the literature and use data from a survey of higher education graduates in Vietnam. The results support the unobserved heterogeneity explanation for computer wage premiums. They suggest that computers may make the productive workers even more productive. However, given the scarcity of computers in low-income countries, an operational strategy of increasing computer availability and skills would seem to offer considerable hope for increasing the incomes of the poor.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3008.

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Date of creation: 31 Mar 2003
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Handle: RePEc:wbk:wbrwps:3008

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Related research
Keywords: Information Technology; General Technology; Educational Technology and Distance Education; ICT Policy and Strategies; Teaching and Learning; ICT Policy and Strategies; General Technology; Educational Technology and Distance Education; Teaching and Learning; Primary Education;

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  1. Tan, Hong & Batra, Geeta, 1997. "Technology and Firm Size-Wage Differentials in Colombia, Mexico, and Taiwan (China)," World Bank Economic Review, Oxford University Press, vol. 11(1), pages 59-83, January.
  2. repec:fth:prinin:439 is not listed on IDEAS
  3. Chris Sakellariou, 2003. "Rates of Return to Investments in Formal and Technical/Vocational Education in Singapore," Education Economics, Taylor and Francis Journals, vol. 11(1), pages 73-87, January. [Downloadable!] (restricted)
  4. Borghans, Lex & ter Weel, Bas, 2003. "Do We Need Computer Skills to Use a Computer? Evidence from Britain," IZA Discussion Papers 685, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Choi, K.S., 1993. "Technological Change and Educational Wage Differentials in Korea," Papers 698, Yale - Economic Growth Center.
  6. Entorf, Horst & Gollac, Michel & Kramarz, Francis, 1999. "New Technologies, Wages, and Worker Selection," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 464-91, July. [Downloadable!] (restricted)
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  7. Entorf, Horst & Kramarz, Francis, 1997. "Does unmeasured ability explain the higher wages of new technology workers?," European Economic Review, Elsevier, vol. 41(8), pages 1489-1509, August. [Downloadable!] (restricted)
  8. David H. Autor & Frank Levy & Richard Murnane, 2000. "Upstairs, Downstairs: Computer-Skill Complementarity and Computer-Labor Substitution on Two Floors of a Large Bank," NBER Working Papers 7890, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. DiNardo, John E & Pischke, Jorn-Steffen, 1997. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 291-303, February.
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  10. John P. Haisken-DeNew & Christoph M. Schmidt, 2000. "Money for Nothing and Your Chips for Free? The Anatomy of the PC Wage Differential," Econometric Society World Congress 2000 Contributed Papers 0859, Econometric Society. [Downloadable!]
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  11. Drolet, Marie & Morissette, René, 1998. "Computers, Fax Machines and Wages in Canada: What Really Matters?," Analytical Studies Branch Research Paper Series 1998126e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  12. Borghans,Lex & Weel,Bas,ter, 2001. "Computers, Skills and Wages," Research Memoranda 019, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  13. Bresnahan, Timothy F, 1999. "Computerisation and Wage Dispersion: An Analytical Reinterpretation," Economic Journal, Royal Economic Society, vol. 109(456), pages F390-415, June. [Downloadable!] (restricted)
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  14. Borghans L. & Weel B. ter, 2000. "How computerizaton changes the UK Labour Market: The Facts viewed from a new Perspective," Working Papers 010, Maastricht : ROA,Research Centre for Education and the Labour Market. [Downloadable!]
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  15. Donald J. Robbins, 1996. "Evidence on Trade and Wages in the Developing World," OECD Development Centre Working Papers 119, OECD, Development Centre. [Downloadable!]
  16. Harry A. Krashinsky, 2000. "Do Marital Status and Computer Usage Really Change the Wage Structure? Evidence from a Sample of Twins," Working Papers 818, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  17. Oosterbeek, Hessel, 1997. "Returns from computer use: A simple test on the productivity interpretation," Economics Letters, Elsevier, vol. 55(2), pages 273-277, August. [Downloadable!] (restricted)
  18. Borghans,Lex & Weel,Bas,ter, 2001. "What happens when agent T gets a computer?," Research Memoranda 017, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  19. Francis Green, 1998. "The Value of Skills," Studies in Economics 9819, Department of Economics, University of Kent. [Downloadable!]
  20. Michael J. Handel, 1999. "Computers and the Wage Structure," Economics Working Paper Archive 285, Levy Economics Institute, The. [Downloadable!]
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