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Computer Adoption and Returns in Transition

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  • Kuku, Yemisi
  • Orazem, Peter
  • Singh, Rajesh

Abstract

Across nine transition economies, it is the young, educated, English-speaking workers with the best access to local telecommunications infrastructures that work with computers. These workers earn about 25% more than do workers of comparable observable skills who do not use computers. Controlling for likely simultaneity between computer use at work and labor market earnings makes the apparent returns to computer use disappear. These results are corroborated using Russian longitudinal data on earnings and computer use on the job. High costs of computer use in transition economies suppress wages that firms can pay their workers who use computers.

Suggested Citation

  • Kuku, Yemisi & Orazem, Peter & Singh, Rajesh, 2004. "Computer Adoption and Returns in Transition," Staff General Research Papers Archive 12195, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:12195
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    File URL: http://www2.econ.iastate.edu/papers/p5298-2004-10-10.pdf
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    References listed on IDEAS

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    Cited by:

    1. Vinod Mishra & Russell Smyth, 2014. "Technological Change and Wages in China: Evidence from Matched Employer–Employee Data," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 123-138, February.
    2. Ono, Hiroshi & Zavodny, Madeline, 2007. "Immigrants, English Ability and the Digital Divide," IZA Discussion Papers 3124, Institute for the Study of Labor (IZA).

    More about this item

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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