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New Technologies, Wages, and Worker Selection

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  • Entorf, Horst
  • Gollac, Michel
  • Kramarz, Francis

Abstract

The authors study the effect of new technologies on wages and employment using a unique panel that matches data on individuals and on their firms. As in the United States, they show that computer users are better paid than nonusers (15-20 percent more). But these workers were already better compensated before the introduction of the new technologies. Total returns to computer use amount to 2 percent. Measurement errors do not affect the authors' estimates. Furthermore, computer users are protected from job losses as long as bad business conditions do not last too long. This result holds even after controlling for possible selection biases. Copyright 1999 by University of Chicago Press.

Suggested Citation

  • 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.
  • Handle: RePEc:ucp:jlabec:v:17:y:1999:i:3:p:464-91
    DOI: 10.1086/209928
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    References listed on IDEAS

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    1. 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.
    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. 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.
    4. repec:fth:prinin:377 is not listed on IDEAS
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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