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Money for Nothing and Your Chips for Free? The Anatomy of the PC Wage Differential

  • John P. Haisken-DeNew

    (German Institute for Economic Research)

  • Christoph M. Schmidt

    (University of Heidelberg)

The role of the computer at the workplace is examined in determining the wage structure in Germany. It is shown that the wage premium attributed to using a computer at work using cross-sectional results for 1997 is 7%. To control for unmeasured individual effects, we use a random effects and fixed effects estimator. The coefficient for computer usage at the workplace did NOT remain stable and although just barely significant, was reduced to mere 1% with individual fixed effects. We conclude that there are no computer usage wage differentials worth speaking of, once one controls adequately for unobserved individual heterogeneity.

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Paper provided by Econometric Society in its series Econometric Society World Congress 2000 Contributed Papers with number 0859.

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Date of creation: 01 Aug 2000
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Handle: RePEc:ecm:wc2000:0859
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  1. John E. DiNardo & Jorn-Steffen Pischke, 1996. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," NBER Working Papers 5606, National Bureau of Economic Research, Inc.
  2. John P. Haisken-DeNew & Christoph M. Schmidt, . "Inter-Industry and Inter-Region Differentials: Mechanics and Interpretation," Working Papers 9504, SELAPO Center for Human Resources.
  3. Brian D. Bell, . "Skill-Biased Technical Change and Wages: Evidence from a Longitudinal Data Se," Economics Papers W25., Economics Group, Nuffield College, University of Oxford.
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