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The Impact Of New Technologies On Wages: Lessons From Matching Panels On Employees And On Their Firms

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  • Horst Entorf
  • Francis Kramarz

Abstract

We study the impact on New Technologies (NT) on wages using a panel that matches data on individuals and on their firms. In his article on the same topic, Krueger (1993) did not give a definitive answer to the following question: if workers who use NT are better paid, is it because they are abler or because NT increases their productivity. We try to provide an answer to this question. Comparing cross-section estimates and individual fixed-effect estimates, we show that computer-based new technologies are used by abler workers. These workers learn and become more productive when they get more experienced with these NT. In terns of wage differentials, the introduction of computer-based NT contributes to a small increase. The use of firm-level data does not modify these conclusions.

Suggested Citation

  • Horst Entorf & Francis Kramarz, 1998. "The Impact Of New Technologies On Wages: Lessons From Matching Panels On Employees And On Their Firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(2-4), pages 165-198.
  • Handle: RePEc:taf:ecinnt:v:5:y:1998:i:2-4:p:165-198
    DOI: 10.1080/10438599800000004
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    References listed on IDEAS

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    1. John M. Abowd & Bruno Crepon & Francis Kramarz & Alain Trognon, 1995. "A La Recherche des Moments Perdus: Covariance Models for Unbalanced Panels with Endogenous Death," NBER Technical Working Papers 0180, National Bureau of Economic Research, Inc.
    2. Entorf, Horst & Gollac, Michel & Kramarz, Francis, 1999. "New Technologies, Wages, and Worker Selection," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 464-491, July.
    3. Jacob Mincer, 1989. "Human Capital Responses to Technological Change in the Labor Market," NBER Working Papers 3207, National Bureau of Economic Research, Inc.
    4. Joseph G. Altonji & Nicolas Williams, 1992. "The Effects of Labor Market Experience, Job Seniority, and Job Mobility on Wage Growth," NBER Working Papers 4133, National Bureau of Economic Research, Inc.
    5. Eli Berman & John Bound & Zvi Griliches, 1993. "Changes in the Demand for Skilled Labor within U.S. Manufacturing Industries: Evidence from the Annual Survey of Manufacturing," NBER Working Papers 4255, National Bureau of Economic Research, Inc.
    6. David Card & Francis Kramarz & Thomas Lemieux, 1999. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 843-877, August.
    7. Jacob Mincer, 1991. "Human Capital, Technology, and the Wage Structure: What Do Time Series Show?," NBER Working Papers 3581, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Fredrik Andersson & Clair Brown & Benjamin Campbell & Hyowook Chiang & Yooki Park, 2008. "The Effect of HRM Practices and R&D Investment on Worker Productivity," NBER Chapters,in: The Analysis of Firms and Employees: Quantitative and Qualitative Approaches, pages 19-43 National Bureau of Economic Research, Inc.
    2. John M. Abowd & Françis Kramarz & Antoine Moreau, 1996. "Product Quality and Worker Quality," Annals of Economics and Statistics, GENES, issue 41-42, pages 299-322.
    3. repec:eee:soceps:v:58:y:2017:i:c:p:51-62 is not listed on IDEAS
    4. Scott Stern, 1999. "Do Scientists Pay to Be Scientists?," NBER Working Papers 7410, National Bureau of Economic Research, Inc.
    5. Meng, Xin & Junankar, Pramod N. (Raja) & Kapuscinski, Cezary A., 2004. "Job Mobility along the Technological Ladder: A Case Study of Australia," IZA Discussion Papers 1169, Institute for the Study of Labor (IZA).
    6. Sid Durbin, 2004. "Review of Workplace Skills, Technology Adoption and Firm Productivity: A Review," Treasury Working Paper Series 04/16, New Zealand Treasury.
    7. Bauer, Thomas K. & Bender, Stefan, 2001. "Flexible Work Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 353, Institute for the Study of Labor (IZA).
    8. Elizabeth A. Mack, 2015. "Variations in the Broadband-Business Connection across the Urban Hierarchy," Growth and Change, Wiley Blackwell, vol. 46(3), pages 400-423, September.
    9. Merkuryeva, Irina S. & Paramonova, Elena N. & Bitina, Julia M. & Gilchenok, Veronika L., 2006. "Economic analysis based on matched employer-employee data: Methodology of data collection and research," Working Papers 805, Graduate School of Management, St. Petersburg State University.
    10. 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

    Keywords

    Wage; New Technologies; Computers JEL Classification: J31; 533; 033;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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