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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," 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. repec:oup:cesifo:v:63:y:2017:i:3:p:255-269. is not listed on IDEAS
    3. 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.
    4. 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).
    5. Martin, John P., 2017. "Policies to Expand Digital Skills for the Machine Age," IZA Policy Papers 123, Institute of Labor Economics (IZA).
    6. 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].
    7. 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).
    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. 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.
    10. Eric A. Hanushek & Marc Piopiunik & Simon Wiederhold, 2014. "The Value of Smarter Teachers: International Evidence on Teacher Cognitive Skills and Student Performance," CESifo Working Paper Series 5120, CESifo Group Munich.
    11. 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.
    12. 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).
    13. Noemi Oggero & Maria Cristina Rossi & Elisa Ughetto, 2019. "Entrepreneurial Spirits in Women and Men. The Role of Financial Literacy and Digital Skills," Working papers 059, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
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    15. repec:ces:ifosdt:v:70:y:2017:i:13:p:52-54 is not listed on IDEAS
    16. 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.
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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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