Computer usage, destination language proficiency and the earnings of natives and immigrants
This paper uses the concept of a computer as a public good within the household to model the demand for computers at home. It also investigates the determinants, and consequences for earnings, of computer use. The equations are estimated using data on the native born and immigrants from the 2001 Census of Population and Housing in Australia. The multivariate analyses show that recent arrivals are more likely to use computers than the Australian born. The data suggests a high degree of favorable selection in migration as the level of computer use in Australia is much higher than in most of the countries that Australia’s immigrants come from. Those with a higher permanent income (education, household assets) are more likely to have a computer at home, but there is no effect of transitory income (unemployment). Immigrants who are more proficient in English are also more likely to use a computer. The relation between age and computer use is strongly influenced by cohort effects. Using a computer at home is associated with about 7% and 13% higher earnings for native-born and foreign-born men, respectively. For the immigrants, the effects of schooling and English language proficiency on earnings are greater among those who use a computer at home. This suggests complementarity in the labor market. The use of a computer is shown to be a way the foreign born can increase the international transferability of their pre-immigration skills, a finding that has implications for immigrant assimilation policies. Copyright Springer Science+Business Media, LLC 2007
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dustmann, C. & van Soest, A.H.O., 1998.
"Language Fluency and Earnings : Estimation with Misclassified Language Indicators,"
1998-120, Tilburg University, Center for Economic Research.
- Christian Dustmann & Arthur van Soest, 2001. "Language Fluency And Earnings: Estimation With Misclassified Language Indicators," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 663-674, November.
- Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
- Chiswick, Barry R, 1977. "Sons of Immigrants: Are They at an Earnings Disadvantage?," American Economic Review, American Economic Association, vol. 67(1), pages 376-80, February.
- Chiswick, Barry R. & Miller, Paul W., 2003.
"The complementarity of language and other human capital: immigrant earnings in Canada,"
Economics of Education Review,
Elsevier, vol. 22(5), pages 469-480, October.
- Chiswick, Barry R. & Miller, Paul W., 2002. "The Complementarity of Language and Other Human Capital: Immigrant Earnings in Canada," IZA Discussion Papers 451, Institute for the Study of Labor (IZA).
- Liu, Jin-Tan & Tsou, Meng-Wen & Hammitt, James K., 2004. "Computer use and wages: evidence from Taiwan," Economics Letters, Elsevier, vol. 82(1), pages 43-51, January.
- Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
- Makepeace, Gerry & Peter Dolton, 2003.
"Computer use and earnings in Britain,"
Royal Economic Society Annual Conference 2003
146, Royal Economic Society.
- Richard Fry & B. Lindsay Lowell, 2003. "The Value of Bilingualism in the U.S. Labor Market," ILR Review, Cornell University, ILR School, vol. 57(1), pages 128-140, October.
- G. R. Arabsheibani & J. M. Emami & A. Marin, 2004. "The Impact of Computer Use On Earnings in the UK," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(1), pages 82-94, 02.
- Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-88, April.
- Miller, Paul & Mulvey, Charles, 1997. "Computer Skills and Wages," Australian Economic Papers, Wiley Blackwell, vol. 36(68), pages 106-13, June.
- Ernest P. Goss & Joseph M. Phillips, 2002. "How Information Technology Affects Wages: Evidence Using Internet Usage As a Proxy for IT Skills," Journal of Labor Research, Transaction Publishers, vol. 23(3), pages 463-474, July.
- Harry A. Krashinsky, 2004. "Do Marital Status and Computer Usage Really Change the Wage Structure?," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
- Chiswick, Barry R. & Miller, Paul W., 2004. "Linguistic Distance: A Quantitative Measure of the Distance Between English and Other Languages," IZA Discussion Papers 1246, Institute for the Study of Labor (IZA).
- Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
- Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
- 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.
- John E. DiNardo & Jorn-Steffen Pischke, 1996. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," NBER Working Papers 5606, National Bureau of Economic Research, Inc.
- Dinardo, J.E. & Pischke, J.S., 1996. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," Working papers 96-12, Massachusetts Institute of Technology (MIT), Department of Economics.
- Richard Fry & B. Lindsay Lowell, 2003. "The value of bilingualism in the U.S. labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(1), pages 128-141, October.
- Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, vol. 11(3), pages 355-371, June.
- Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 369-405, July.
- Chiswick, Barry R & Miller, Paul W, 1985. "Immigrant Generation and Income in Australia," The Economic Record, The Economic Society of Australia, vol. 61(173), pages 540-53, June.
- Paul W. Miller & Leanne M. Neo, 2003. "Labour Market Flexibility and Immigrant Adjustment," The Economic Record, The Economic Society of Australia, vol. 79(246), pages 336-356, 09.
When requesting a correction, please mention this item's handle: RePEc:kap:reveho:v:5:y:2007:i:2:p:129-157. 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: (Sonal Shukla)or (Christopher F. Baum)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.