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Use IT or Lose IT? The Impact of Computers on Earnings

Author

Listed:
  • Dolton, Peter

    () (University of Sussex)

  • Makepeace, Gerry

    () (Cardiff University)

  • Robinson, Helen

    () (Cardiff University)

Abstract

The extent to which the impact of computer skills depends on how computers are used is investigated using British data from an establishment survey, cohort studies and the European E-Living survey. We examine the importance of activity and frequency of use in these various data sources. We find that the impact on earnings depends on which cohort of workers is examined and that there are differences over time. The regression results show that the use of computers for internet access and for email is positively significant across all of our datasets, although there are differences in the size of the effects between men and women.

Suggested Citation

  • Dolton, Peter & Makepeace, Gerry & Robinson, Helen, 2007. "Use IT or Lose IT? The Impact of Computers on Earnings," IZA Discussion Papers 2588, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp2588
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    References listed on IDEAS

    as
    1. Alan B. Krueger, 1993. "How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984–1989," The Quarterly Journal of Economics, Oxford University Press, vol. 108(1), pages 33-60.
    2. Kevin T. Reilly, 1995. "Human Capital and Information: The Employer Size-Wage Effect," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 1-18.
    3. Francis Green, 1998. "The Value of Skills," Studies in Economics 9819, School of Economics, University of Kent.
    4. Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000. "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis," Econometrica, Econometric Society, vol. 68(5), pages 1029-1054, September.
    5. John E. DiNardo & Jörn-Steffen Pischke, 1997. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," The Quarterly Journal of Economics, Oxford University Press, vol. 112(1), pages 291-303.
    6. Entorf, Horst & Kramarz, Francis, 1997. "Does unmeasured ability explain the higher wages of new technology workers?," European Economic Review, Elsevier, vol. 41(8), pages 1489-1509, August.
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    Citations

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    Cited by:

    1. Peter Dolton & Panu Pelkonen, 2007. "The Impact of Computer Use, Computer Skills and Computer Use Intensity: Evidence from WERS 2004," CEE Discussion Papers 0081, Centre for the Economics of Education, LSE.
    2. Giorgio Pietro, 2007. "The effect of computer use on earnings in Italy," Empirical Economics, Springer, vol. 33(2), pages 245-262, September.
    3. Peter Dolton & Panu Pelkonen, 2008. "The Wage Effects of Computer Use: Evidence from WERS 2004," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 587-630, December.
    4. Cindy Zoghi & Sabrina Wulff Pabilonia, 2007. "Which workers gain upon adopting a computer?," Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 423-444, May.
    5. Hsin-Fan Chen & Long-Hwa Chen, 2007. "The role of computer use and English proficiency in gender wage inequality: Taiwanese evidence," Economics Bulletin, AccessEcon, vol. 10(16), pages 1-9.
    6. repec:ebl:ecbull:v:10:y:2007:i:16:p:1-9 is not listed on IDEAS

    More about this item

    Keywords

    ICT earnings;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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