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Computer Use and Earnings in Britain

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  • Peter Dolton
  • Gerry Makepeace

Abstract

This paper estimates various models of the effect of computer use on earnings using recent NCDS data. The cross-section estimates are large and significant while the standard fixed effects estimates are small or insignificant. The panel estimates change considerably once we allow the coefficients to differ across individuals. Conditional on assumptions about when individuals use computers, conventional panel estimates may not identify the crucial parameters and alternative methods are needed. We conclude that there was a substantial premium associated with computer use for some individuals in the UK. Copyright 2004 Royal Economic Society.

Suggested Citation

  • Peter Dolton & Gerry Makepeace, 2004. "Computer Use and Earnings in Britain," Economic Journal, Royal Economic Society, vol. 114(494), pages 117-129, March.
  • Handle: RePEc:ecj:econjl:v:114:y:2004:i:494:p:c117-c129
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    References listed on IDEAS

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    1. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "Minimum Wages and On-the-job Training," NBER Working Papers 7184, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Ng, Ying Chu, 2006. "Levels of computer self-efficacy, computer use and earnings in China," Economics Letters, Elsevier, vol. 90(3), pages 427-432, March.
    2. Michael J. Handel, 2016. "What do people do at work?
      [Was machen Menschen bei der Arbeit?]
      ," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(2), pages 177-197, October.
    3. Spitz-Oener, Alexandra, 2007. "The Returns to Pencil Use Revisited," ZEW Discussion Papers 07-020, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    4. Benoit Dostie & Mathieu Trépanier, 2004. "Return to Computer Use and Organizational Practices of the firm," Cahiers de recherche 04-06, HEC Montréal, Institut d'économie appliquée.
    5. Peter Dolton & Panu Pelkonen, 2007. "The Impact of Computer Use, Computer Skills and Computer Use Intensity: Evidence from WERS 2004," CEE Discussion Papers 0081, Centre for the Economics of Education, LSE.
    6. Barry Chiswick & Paul Miller, 2007. "Computer usage, destination language proficiency and the earnings of natives and immigrants," Review of Economics of the Household, Springer, vol. 5(2), pages 129-157, June.
    7. Kais Saidi & Lobna Hassen & M. Hammami, 2015. "Econometric Analysis of the Relationship Between ICT and Economic Growth in Tunisia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 1191-1206, December.
    8. Hsin-Fan Chen & Long-Hwa Chen, 2007. "The role of computer use and English proficiency in gender wage inequality: Taiwanese evidence," Economics Bulletin, AccessEcon, vol. 10(16), pages 1-9.
    9. Dunne, Timothy & Troske, Kenneth, 2004. "Technology Adoption and Workforce Skill in U.S. Manufacturing Plants," IZA Discussion Papers 1427, Institute for the Study of Labor (IZA).
    10. Chiswick, Barry R. & Miller, Paul W., 2005. "Computer Skills, Destination Language Proficiency and the Earnings of Natives and Immigrants," IZA Discussion Papers 1755, Institute for the Study of Labor (IZA).
    11. Cindy Zoghi & Sabrina Wulff Pabilonia, 2007. "Which workers gain upon adopting a computer?," Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 423-444, May.
    12. Brown, Sarah & Gray, Daniel & McHardy, Jolian & Taylor, Karl, 2015. "Employee trust and workplace performance," Journal of Economic Behavior & Organization, Elsevier, pages 361-378.
    13. repec:ebl:ecbull:v:10:y:2007:i:16:p:1-9 is not listed on IDEAS
    14. Sabrina Wulff Pabilonia & Cindy Zoghi, 2004. "Which Workers Gain from Computer Use?," Working Papers 373, U.S. Bureau of Labor Statistics.
    15. Coneus, Katja & Gernandt, Johannes & Saam, Marianne, 2008. "Noncognitive Skills, Internet Use and Educational Dropout," ZEW Discussion Papers 08-044, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    16. Spitz, Alexandra, 2004. "Using Methods of Treatment Evaluation to Estimate the Wage Effect of IT Usage," ZEW Discussion Papers 04-67, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • 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

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