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Computers, Wages and Working Hours in Italy

  • Riccardo Lucchetti

    ()

    (Università Politecnica delle Marche)

  • Stefano Staffolani

    ()

    (Università Politecnica delle Marche)

  • Alessandro Sterlacchini

    ()

    (Università Politecnica delle Marche)

In this paper, the relationships between wages, working hours and the use of computers in the workplace are analysed for the Italian labour market. After addressing several econometric issues (mostly overlooked by previous literature) on the appropriate procedure for evaluating computer effects, we found that only for higher-level white collars the wage premium associated with computer usage is substantial; for lower qualifications, the effect vanishes. The use of computers at work increases the number of hours worked, although this effect is small. Moreover, since hourly wages have a negative impact on hours worked, computers seem to exert little, if any, impact on working time.

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Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 63 (2004)
Issue (Month): 3-4 (December)
Pages: 329-353

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Handle: RePEc:gde:journl:gde_v63_n3-4_p329-353
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  1. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
  2. David Autor & Lawrence Katz & Alan Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," Working Papers 756, Princeton University, Department of Economics, Industrial Relations Section..
  3. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 339-376, February.
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  5. 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.
  6. Riccardo Lucchetti & Alessandro Sterlacchini, 2004. "The Adoption of ICT among SMEs: Evidence from an Italian Survey," Small Business Economics, Springer, vol. 23(2), pages 151-168, 09.
  7. Alan B. Krueger, 1991. "How Computers Have Changed the Wage Structure: Evidence From Microdata, 1984-1989," NBER Working Papers 3858, National Bureau of Economic Research, Inc.
  8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  9. Philippe Aghion & Peter Howitt, 2002. "Wage Inequality and the New Economy," Oxford Review of Economic Policy, Oxford University Press, vol. 18(3), pages 306-323.
  10. Machin, Stephen, 2001. " The Changing Nature of Labour Demand in the New Economy and Skill-Biased Technology Change," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(0), pages 753-76, Special I.
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  12. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages F82-99, February.
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