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The Impact of Technological Change on Older Workers: Evidence from Data on Computer Use

Listed author(s):
  • Leora Friedberg

New technologies like computers alter skill requirements. This paper explores two related effects of the spread of computers on older workers, using data from the Current Population Survey and the Health and Retirement Study. One conclusion is that impending retirement, rather than age alone, explains why older workers used computers less than prime-age workers did. A second conclusion is that computer users retired later than non-users. Although this pattern may arise because workers planning later retirement decided to acquire computer skills, the empirical analysis suggests that the causation also went in the other direction, with computer users choosing to delay retirement. It will be important to understand these effects as the baby boom cohort nears retirement, while technologies continue to change rapidly.

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File URL: http://ilr.sagepub.com/content/56/3/511.abstract
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Article provided by Cornell University, ILR School in its journal Industrial & Labor Relations Review.

Volume (Year): 56 (2003)
Issue (Month): 3 (April)
Pages: 511-529

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Handle: RePEc:sae:ilrrev:v:56:y:2003:i:3:p:511-529
Contact details of provider: Web page: http://www.ilr.cornell.edu

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  1. Alan B. Krueger, 1993. "How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984–1989," The Quarterly Journal of Economics, Oxford University Press, vol. 108(1), pages 33-60.
  2. Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
  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, Oxford University Press, vol. 117(1), pages 339-376.
  4. John Rust & Christopher Phelan, 1997. "How Social Security and Medicare Affect Retirement Behavior in a World of Incomplete Markets," Econometrica, Econometric Society, vol. 65(4), pages 781-832, July.
  5. Chinhui Juhn, 1992. "Decline of Male Labor Market Participation: The Role of Declining Market Opportunities," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 79-121.
  6. Michael Hurd & Kathleen McGarry, 1993. "The Relationship Between Job Characteristics and Retirement," NBER Working Papers 4558, National Bureau of Economic Research, Inc.
  7. Claudia Goldin & Robert A. Margo, 1992. "The Great Compression: The Wage Structure in the United States at Mid-Century," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 1-34.
  8. repec:hrv:faseco:30703979 is not listed on IDEAS
  9. Levy, Frank & Murnane, Richard J, 1996. "With What Skills Are Computers a Complement?," American Economic Review, American Economic Association, vol. 86(2), pages 258-262, May.
  10. Bartel, Ann P & Sicherman, Nachum, 1993. "Technological Change and Retirement Decisions of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 162-183, January.
  11. Claudia Goldin & Lawrence F. Katz, 1998. "The Origins of Technology-Skill Complementarity," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 693-732.
  12. George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
  13. John E. DiNardo & Jörn-Steffen Pischke, 1997. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," The Quarterly Journal of Economics, Oxford University Press, vol. 112(1), pages 291-303.
  14. Friedberg, Leora, 1999. "The Impact of Technological Change on Older Workers: Evidence from Data on Computers," University of California at San Diego, Economics Working Paper Series qt1s97n77x, Department of Economics, UC San Diego.
  15. Robert H. Topel, 1997. "Factor Proportions and Relative Wages: The Supply-Side Determinants of Wage Inequality," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 55-74, Spring.
  16. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1169-1213.
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