The Impact of Computer Use, Computer Skills and Computer Use Intensity: Evidence from WERS 2004
Computers and ICT have changed the way we live and work. The latest WERS 2004 provides a snapshot of how using ICT at the workplace has changed our working lives. Various studies have suggested that the use of a computer at work boosted earnings by as much as 20%. Others suggest this reported impact is due to unobserved heterogeneity. Using excellent data from the WERS employer-employee matched data we compare OLS estimates with those from estimations which include controls for establishments, industrial sectors and occupations and use control function, treatment effects models and Instrumental Variable estimation. We show that the results of OLS estimation grossly overestimate the return to computer use but that including occupation controls, reduces the return to between 3-10%. We explore the return on different IT skills and also find a return to the intensity of computer use as measured by the number of tasks a computer is used for.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Dolton & Gerry Makepeace & Helen Robinson, 2007.
"Use IT or Lose IT? The Impact of Computers on Earnings,"
CEE Discussion Papers
0082, Centre for the Economics of Education, LSE.
- Peter Dolton & Gerry Makepeace & Helen Robinson, 2007. "Use It Or Lose It? The Impact Of Computers On Earnings," Manchester School, University of Manchester, vol. 75(6), pages 673-694, December.
- Peter Dolton & Gerry Makepeace & Helen Robinson, 2007. "Use IT or lose IT?: the impact of computers on earnings," LSE Research Online Documents on Economics 19387, London School of Economics and Political Science, LSE Library.
- Dolton, Peter & Makepeace, Gerry & Robinson, Helen, 2007. "Use IT or Lose IT? The Impact of Computers on Earnings," IZA Discussion Papers 2588, Institute for the Study of Labor (IZA).
- Sabrina Wulff Pabilonia & Cindy Zoghi, 2005.
"Returning to the Returns to Computer Use,"
377, U.S. Bureau of Labor Statistics.
- Makepeace, Gerry & Peter Dolton, 2003.
"Computer use and earnings in Britain,"
Royal Economic Society Annual Conference 2003
146, Royal Economic Society.
- Harmon, Colm & Walker, Ian, 1995.
"Estimates of the Economic Return to Schooling for the United Kingdom,"
American Economic Review,
American Economic Association, vol. 85(5), pages 1278-86, December.
- Colm Harmon & Ian Walker, 1995. "Estimates of the economic return to schooling for the United Kingdom," Open Access publications 10197/647, School of Economics, University College Dublin.
- Wu, De-Min, 1973. "Alternative Tests of Independence Between Stochastic Regressors and Disturbances," Econometrica, Econometric Society, vol. 41(4), pages 733-50, July.
When requesting a correction, please mention this item's handle: RePEc:cep:ceedps:0081. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.