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

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  • Sakellariou, Chris N.
  • Patrinos, Harry A.

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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Bibliographic Info

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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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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References

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  1. Timothy F. Bresnahan, 1997. "Computerization and Wage Dispersion: An Analytical Reinterpretation," Working Papers 97031, Stanford University, Department of Economics.
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Cited by:
  1. Oosterbeek, Hessel & Ponce, Juan, 2011. "The impact of computer use on earnings in a developing country: Evidence from Ecuador," Labour Economics, Elsevier, vol. 18(4), pages 434-440, August.

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