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Returns to ICT Skills

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  • Wiederhold, Simon
  • Falck, Oliver
  • Heimisch, Alexandra

Abstract

How important is mastering information and communications technology (ICT) in modern labor markets? Previous research offers no guidance in assessing the labor-market returns to ICT skills, primarily because skill data have been unavailable. We draw on unique data that provide internationally comparable information on ICT skills in 19 countries. Using an instrument that leverages cross-country variation in the technologically determined probability of having Internet access, we find that ICT skills are substantially rewarded in the labor market. Placebo estimations show that exogenous Internet availability cannot explain numeracy or literacy skills, suggesting that our identifying variation is independent of a person s general ability.

Suggested Citation

  • Wiederhold, Simon & Falck, Oliver & Heimisch, Alexandra, 2015. "Returns to ICT Skills," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112803, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc15:112803
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    Cited by:

    1. Monika Köppl-turyna & Michael Christl, 2018. "Returns to Skills or Returns to Tasks? A Comment on Hanushek et al. (2015)," Economics Bulletin, AccessEcon, vol. 38(2), pages 783-790.
    2. Franziska Hampf & Ludger Woessmann, 2017. "Vocational vs. General Education and Employment over the Life Cycle: New Evidence from PIAAC," CESifo Economic Studies, CESifo, vol. 63(3), pages 255-269.
    3. De La Rica, Sara & Gortazar, Lucas, 2017. "Digitalization at work, Job Tasks and Wages: Cross-Country evidence from PIAAC1," GLO Discussion Paper Series 22, Global Labor Organization (GLO).
    4. Martin, John P., 2017. "Policies to Expand Digital Skills for the Machine Age," IZA Policy Papers 123, Institute of Labor Economics (IZA).
    5. Stockinger, Bastian, 2017. "The effect of broadband internet on establishments' employment growth: evidence from Germany," IAB Discussion Paper 201719, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Fabienne Kiener & Ann-Sophie Gnehm & Simon Clematide & Uschi Backes-Gellner, 2019. "Different Types of IT Skills in Occupational Training Curricula and Labor Market Outcomes," Economics of Education Working Paper Series 0159, University of Zurich, Department of Business Administration (IBW).
    7. P. Geetha Rani & Megha Shree & Rajesh Shukla, 2019. "Return to Skills in India: The Role of Digital Access and Usage," Indian Journal of Human Development, , vol. 13(3), pages 254-277, December.
    8. Fairlie, Robert W. & Bahr, Peter Riley, 2018. "The effects of computers and acquired skills on earnings, employment and college enrollment: Evidence from a field experiment and California UI earnings records," Economics of Education Review, Elsevier, vol. 63(C), pages 51-63.
    9. Bastian Stockinger, 2019. "Broadband internet availability and establishments’ employment growth in Germany: evidence from instrumental variables estimations," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-23, December.
    10. Rainer Kotschy & Uwe Sunde & Tommaso MonacelliManaging Editor, 2018. "Can education compensate the effect of population ageing on macroeconomic performance?," Economic Policy, CEPR;CES;MSH, vol. 33(96), pages 587-634.
    11. Eric A. Hanushek & Marc Piopiunik & Simon Wiederhold, 2019. "The Value of Smarter Teachers: International Evidence on Teacher Cognitive Skills and Student Performance," Journal of Human Resources, University of Wisconsin Press, vol. 54(4), pages 857-899.
    12. Noemi Oggero & Maria Cristina Rossi & Elisa Ughetto, 2020. "Entrepreneurial spirits in women and men. The role of financial literacy and digital skills," Small Business Economics, Springer, vol. 55(2), pages 313-327, August.
    13. Irene Bertschek & Reiner Clement & Daniel Buhr & Hartmut Hirsch-Kreinsen & Oliver Falck & Alexandra Heimisch & Anita Jacob-Puchalska & Andreas Mazat, 2015. "Industrie 4.0: Digitale Wirtschaft – Herausforderung und Chance für Unternehmen und Arbeitswelt," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(10), pages 03-18, May.
    14. Martin, John P., 2018. "Skills for the 21st Century: Findings and Policy Lessons from the OECD Survey of Adult Skills," IZA Policy Papers 138, Institute of Labor Economics (IZA).
    15. Rainer Franz Kotschy, 2019. "Health Dynamics Shape Life-Cycle Incomes," CESifo Working Paper Series 7953, CESifo.
    16. Stockinger, Bastian, 2019. "Broadband internet availability and establishments' employment growth in Germany : evidence from instrumental variables estimations," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 53(1), pages .7(1-23).
    17. repec:cep:cverdp:003 is not listed on IDEAS
    18. Franziska Hampf, 2019. "The Effect of Compulsory Schooling on Skills: Evidence from a Reform in Germany," ifo Working Paper Series 313, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    19. Maarten Goos & Melanie Arntz & Ulrich Zierahn & Terry Gregory & Stephanie Carretero Gomez & Ignacio Gonzalez Vazquez & Koen Jonkers, 2019. "The Impact of Technological Innovation on the Future of Work," JRC Working Papers on Labour, Education and Technology 2019-03, Joint Research Centre (Seville site).
    20. Franziska Hampf & Marc Piopiunik & Simon Wiederhold, 2020. "The Effects of Graduating from High School in a Recession: College Investments, Skill Formation, and Labor-Market Outcomes," CESifo Working Paper Series 8252, CESifo.
    21. Oliver Falck, 2017. "Digitalisierung vernetzt Wirtschaft und Wissenschaft," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(13), pages 52-54, July.
    22. Perry Anja & Rammstedt Beatrice, 2016. "The Research Data Center PIAAC at GESIS," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(5), pages 581-593, October.
    23. Alexandra Heimisch & Valentin Lindlacher & Julia Schricker, 2017. "Digitalisierung in deutschen Unternehmen: Eine Bestandsaufnahme," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(21), pages 38-40, November.

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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