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Computer use and earnings in Britain

  • Makepeace, Gerry

    (Cardiff University)

  • Peter Dolton

This paper estimates various models of the effect of computer use on earnings using recent NCDS data. The cross-section estimates are large and significant while the standard fixed effects estimates are small or insignificant. The panel estimates change considerably once we allow the coefficients to differ across individuals. Indeed, conditional on assumptions about when individuals use computers, conventional panel estimates may not identify the crucial parameters and cross-sectional methods may be needed. We conclude that there was a premium associated with computer use for some individuals in the UK which we attribute to better capital equipment.

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Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 146.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:146
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