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If not computers then what? Returns to computer use in the UK revisited

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  • G. Reza Arabsheibani
  • Alan Marin

Abstract

In recent years much attention has been paid to the effect on wages of skill-biased technology, especially the use of computers. Although empirical studies have shown a positive relationship between computer-use and earnings, doubts have been cast on whether this is a causal relationship or merely represents unobserved other factors, which are themselves positively linked to computer usage. This study provides evidence that computers themselves raise wages. Although their impact on wages falls as other controls are included in the regression, it still remains significant whilst the effect of another proxy for unobserved factors becomes insignificant. Furthermore, improvements in computer use have an additional impact on earnings, supporting the productivity interpretation.

Suggested Citation

  • G. Reza Arabsheibani & Alan Marin, 2006. "If not computers then what? Returns to computer use in the UK revisited," Applied Economics, Taylor & Francis Journals, vol. 38(21), pages 2461-2467.
  • Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2461-2467
    DOI: 10.1080/00036840500427668
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    References listed on IDEAS

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    1. Sawyer, Malcolm (ed.), 2004. "The UK Economy," OUP Catalogue, Oxford University Press, edition 16, number 9780199266517.
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    Cited by:

    1. Vinod Mishra & Russell Smyth, 2014. "Technological Change and Wages in China: Evidence from Matched Employer–Employee Data," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 123-138, February.

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