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Returns to Computer Use and Organizational Practices of the Firm

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  • Dostie, Benoit

    (HEC Montreal)

  • Trépanier, Mathieu

    (Northwestern University)

Abstract

In this paper, we test the hypothesis that computer use will lead to productivity gains only if the firm uses an appropriate set of organizational practices. Detailed data on organizational practices and workers’ compensation are obtained through a Canadian longitudinal linked employer-employee database called the Workplace and Employee Survey (WES). Linked data allow us to take into account both worker and firm unobserved heterogeneity through the estimation of a linear mixed model of wage determination. Our results suggest a small but positive computer-wage premium whose size is related to a set of organizational practices.

Suggested Citation

  • Dostie, Benoit & Trépanier, Mathieu, 2005. "Returns to Computer Use and Organizational Practices of the Firm," IZA Discussion Papers 1541, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1541
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    Cited by:

    1. Grund, Christian, 2005. "Mitarbeiterrekrutierung über das Internet," Bonn Econ Discussion Papers 18/2005, University of Bonn, Bonn Graduate School of Economics (BGSE).
    2. Luci Ellis & Kathryn Smith, 2010. "The Global Upward Trend in the Profit Share," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 56(3), pages 231-256.
    3. Richard Dion & Robert Fay, 2008. "Understanding Productivity: A Review of Recent Technical Research," Discussion Papers 08-3, Bank of Canada.

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    More about this item

    Keywords

    wage determination; human capital; computers; mixed models; linked employer-employee data; organizational practices of the firm;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • 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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