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Computer Use and the Wage Structure in Austria

Author

Listed:
  • Hofer, Helmut

    (Department of Economics and Finance, Institute for Advanced Studies, Vienna)

  • Riedel, Monika

    (Department of Economics and Finance, Institute for Advanced Studies, Vienna)

Abstract

In this paper we examine the relationship between computer premium and job position in Austria. We estimate cross-section wage equations and control for selectivity of computer use via a treatment effects model. We find that the size of the wage effect attributed to computer use varies significantly between job hierarchies. Persons in higher positions receive relatively lower rewards for computer use than workers at lower hierarchy levels. Overall we find that computerisation increased wage inequality in Austria. However, hierarchy-related differences in the relative computer premium in Austria might moderate the effects of computer use on the wage distribution.

Suggested Citation

  • Hofer, Helmut & Riedel, Monika, 2003. "Computer Use and the Wage Structure in Austria," Economics Series 147, Institute for Advanced Studies.
  • Handle: RePEc:ihs:ihsesp:147
    as

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    File URL: http://www.ihs.ac.at/publications/eco/es-147.pdf
    File Function: First version, 2003
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    References listed on IDEAS

    as
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    3. Haskel, Jonathan & Heden, Ylva, 1999. "Computers and the Demand for Skilled Labour: Industry- and Establishment-Level Panel Evidence for the UK," Economic Journal, Royal Economic Society, vol. 109(454), pages 68-79, March.
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    6. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October.
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    Citations

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    Cited by:

    1. Martin Falk, 2004. "Employment of High-skilled Labour, Computer Investment and Innovation Expenditures. Speed-up of Technological Change," WIFO Monatsberichte (monthly reports), WIFO, vol. 77(3), pages 213-222, March.

    More about this item

    Keywords

    Technological change; Computer wage premium; Wage inequality;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • 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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