IDEAS home Printed from https://ideas.repec.org/a/bla/brjirl/v46y2008i4p587-630.html
   My bibliography  Save this article

The Wage Effects of Computer Use: Evidence from WERS 2004

Author

Listed:
  • Peter Dolton
  • Panu Pelkonen

Abstract

Computers and ICT have changed the way we live and work. The latest Workplace Employment Relations Survey (WERS) 2004 provides a snapshot of how using ICT has revolutionized the workplace. Various studies have suggested that the use of a computer at work boosted earnings by as much as 20 per cent. Others suggest this reported impact is due to unobserved heterogeneity. Using excellent data from the WERS employer-employee matched sample, we compare ordinary least squares (OLS) estimates with those from alternative estimation methods and those which include controls for workplace and occupation interactions. We show that OLS estimates overstate the return to computer use but that including occupation and workplace controls, reduces the return to around 3 per cent. We explore the return on different IT skills and find a small return to the use of the 'office IT function' and the intensity of computer use as measured by the number of tasks a computer is used for. Copyright (c) Blackwell Publishing Ltd/London School of Economics 2008.

Suggested Citation

  • Peter Dolton & Panu Pelkonen, 2008. "The Wage Effects of Computer Use: Evidence from WERS 2004," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 587-630, December.
  • Handle: RePEc:bla:brjirl:v:46:y:2008:i:4:p:587-630
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-8543.2008.00696.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joseph G. Altonji & Christina H. Paxson, 1986. "Job Characteristics and Hours of Work," NBER Working Papers 1895, National Bureau of Economic Research, Inc.
    2. repec:fth:prinin:397 is not listed on IDEAS
    3. Stewart, Mark B & Swaffield, Joanna K, 1999. "Low Pay Dynamics and Transition Probabilities," Economica, London School of Economics and Political Science, vol. 66(261), pages 23-42, February.
    4. Kremer, M & Maskin, E, 1996. "Wage Inequality and Segregation by Skill," Working papers 96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
    5. Martijn P. Tummers & Isolde Woittiez, 1991. "A Simultaneous Wage and Labor Supply Model with Hours Restrictions," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 393-423.
    6. Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710 Elsevier.
    7. Euwals, Rob, 2001. "Female Labour Supply, Flexibility of Working Hours, and Job Mobility," Economic Journal, Royal Economic Society, vol. 111(471), pages 120-134, May.
    8. Weiss, Yoram, 1996. "Synchronization of Work Schedules," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(1), pages 157-179, February.
    9. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    10. Joseph G. Altonji & Christina H. Paxson, 1992. "Labor Supply, Hours Constraints, and Job Mobility," Journal of Human Resources, University of Wisconsin Press, vol. 27(2), pages 256-278.
    11. Reuben Gronau, 1998. "A Useful Interpretation of R2; in Binary Choice Models (Or, Have We Dismissed the Good Old R2; Prematurely)," Working Papers 776, Princeton University, Department of Economics, Industrial Relations Section..
    12. Moffitt, Robert, 1984. "The Estimation of a Joint Wage-Hours Labor Supply Model," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 550-566, October.
    13. Stevens, Margaret, 1994. "A Theoretical Model of On-the-Job Training with Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 537-562, October.
    14. Kinoshita, Tomio, 1987. "Working Hours and Hedonic Wages in the Market Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 95(6), pages 1262-1277, December.
    15. Michael Kremer & Eric Maskin, 1996. "Wage Inequality and Segregation," Harvard Institute of Economic Research Working Papers 1777, Harvard - Institute of Economic Research.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francis Green & Alan Felstead & Duncan Gallie & Golo Henseke, 2016. "Skills and work organisation in Britain: a quarter century of change
      [Fertigkeiten, Fertigkeitsanforderungen und Arbeitsorganisation in Grossbritannien: Trends über das letzten Vierteljahrhundert]
      ," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(2), pages 121-132, October.
    2. Melanie K. Jones & Peter J. Sloane, 2010. "Disability and Skill Mismatch," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 101-114, September.
    3. Wickham James, 2011. "Low Skill Manufacturing Work: from skill biased change to technological Regression / Niedrig qualifizierte Industriearbeit: vom qualifikationsbeeinflussten Strukturwandel zur technologischen Regressio," Arbeit, De Gruyter, vol. 20(3), pages 224-238, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:brjirl:v:46:y:2008:i:4:p:587-630. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/lsepsuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.