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New Technologies, Wages and Worker Selection

Author

Listed:
  • H, Entorf

    (Crest)

  • Michel Gollac

    (Crest)

  • Francis Kramarz

    (Crest)

Abstract

We study the impact of new technologies (NT) on wages and employment using a unique panel that matches data on individuals and on their firms. As found in the United States (Krueger (1993)), we show that computer users are better paid than non-users (between 15% and 20% more). But we also show that these workers were already better compensated before the introduction of the NTs. Total returns to computer use amount to 2%. Even when possible measurement errors are taken into account, total returns cannot exceed 4%, which is far from the cross-section 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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • H, Entorf & Michel Gollac & Francis Kramarz, 1997. "New Technologies, Wages and Worker Selection," Working Papers 97-25, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:97-25
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    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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