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Computer, Wages and Working Hours in Italy

  • Riccardo LUCCHETTI

    ()

    (Universita' Politecnica delle Marche, Dipartimento di Economia)

  • Stefano STAFFOLANI

    ()

    (Universita' Politecnica delle Marche, Dipartimento di Economia)

  • Alessandro STERLACCHINI

    ()

    (Universita' Politecnica delle Marche, Dipartimento di Management ed Organizzazione Aziendale)

This paper provides an estimate of the relationships between wages, working hours and the use of computers at the workplace for the Italian labour market. On the methodological side, we other a contribution on the appropriate procedure for estimating the above effects: it is shown that the simultaneity between wages and hours must be taken into account when specifying the statistical model for the data and, furthermore, that the interactions between explanatory variables plays a significant role that cannot be neglected. Our empirical findings are also of interest: by controlling for computer skill, workers' ability and many other covariates, we found that only for higher-level white collars the average wage premium associated with computer usage is in the same order of magnitude as the one estimated for the US, Germany and France, while the effect vanishes for lower qualifications. The use of computers at work increases the number of hours worked, although this effect is small and much lower than that estimated for the US. Moreover, since hourly wages have a negative impact on hours worked, computers seem to exert little, if any, impact on working time.

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File URL: http://docs.dises.univpm.it/web/quaderni/pdf/182.pdf
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Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 182.

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Length: 24
Date of creation: May 2003
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Handle: RePEc:anc:wpaper:182
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  1. Richard B. Freeman, 2002. "The Labour Market in the New Information Economy," Oxford Review of Economic Policy, Oxford University Press, vol. 18(3), pages 288-305.
  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. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  4. Entorf, Horst & Gollac, Michel & Kramarz, Francis, 1997. "New Technologies, Wages and Worker Selection," CEPR Discussion Papers 1761, C.E.P.R. Discussion Papers.
  5. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
  6. Krueger, Alan B, 1993. "How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984-1989," The Quarterly Journal of Economics, MIT Press, vol. 108(1), pages 33-60, February.
  7. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages F82-99, February.
  8. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
  9. Riccardo Lucchetti & Alessandro Sterlacchini, 2004. "The Adoption of ICT among SMEs: Evidence from an Italian Survey," Small Business Economics, Springer, vol. 23(2), pages 151-168, 09.
  10. Machin, Stephen, 2001. " The Changing Nature of Labour Demand in the New Economy and Skill-Biased Technology Change," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(0), pages 753-76, Special I.
  11. Entorf, Horst & Kramarz, Francis, 1997. "Does unmeasured ability explain the higher wages of new technology workers?," European Economic Review, Elsevier, vol. 41(8), pages 1489-1509, August.
  12. Philippe Aghion & Peter Howitt, 2002. "Wage Inequality and the New Economy," Oxford Review of Economic Policy, Oxford University Press, vol. 18(3), pages 306-323.
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