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The Returns to Pencil Use Revisited

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  • Spitz-Oener, Alexandra

Abstract

The increased diffusion of computers is one of the fundamental changes at workplaces in recent decades. While the majority of workers now spend a substantial fraction of their working day with a computer, research on the wage effect of computer use effectively came to a halt after DiNardo and Pischke [1997] found that wages were also positively associated with pencil use, calling into question the ability to distinguish the effect of computers from other confounding factors. Using the same data set as DiNardo and Pischke, but a more recent wave, this paper revitalizes the discussion by showing that the pencil effect disappeared in 1998/99, whereas the computer effect is still present. Computer users - but not pencil users - have experienced a pronounced shift towards analytical and interactive tasks, for which they are rewarded in the workplace.

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  • Spitz-Oener, Alexandra, 2007. "The Returns to Pencil Use Revisited," ZEW Discussion Papers 07-020, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5508
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    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.
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    6. Mathias Silva, 2016. "TIC y Desigualdad Salarial en Uruguay," Documentos de Investigación Estudiantil (students working papers) 16-06, Instituto de Economía - IECON.
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    8. Görlitz, Katja & Tamm, Marcus, 2011. "Revisiting the Complementarity between Education and Training – The Role of Personality, Working Tasks and Firm Effects," Ruhr Economic Papers 307, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Schäffler, Johannes, 2016. "German Direct Investments in the Czech Republic – Employment Effects on German Multinational Enterprises," VfS Annual Conference 2016 (Augsburg): Demographic Change 145526, Verein für Socialpolitik / German Economic Association.
    10. Ingwersen, Kai & Thomsen, Stephan L., 2020. "An Empirical Assessment of Workload and Migrants' Health in Germany," IZA Discussion Papers 13962, IZA Network @ LISER.
    11. Katja Görlitz & Marcus Tamm, 2011. "Revisiting the Complementarity between Education and Training – The Role of Personality, Working Tasks and Firm Effects," Ruhr Economic Papers 0307, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    12. Pfeiffer, Sabine, 2018. "The "future of employment" on the shop floor: Why production jobs are less susceptible to computerization than assumed," International Journal for Research in Vocational Education and Training (IJRVET), European Research Network in Vocational Education and Training (VETNET), European Educational Research Association, vol. 5(3), pages 208-225.
    13. Regula Geel & Uschi Backes-Gellner, 2009. "Occupational Mobility Within and Between Skill Clusters: An Empirical Analysis Based on the Skill-Weights Approach," Economics of Education Working Paper Series 0047, University of Zurich, Department of Business Administration (IBW), revised Mar 2011.
    14. Pfeiffer, Sabine, 2015. "Auswirkungen von Industrie 4.0 auf Aus- und Weiterbildung (ITA-manu:script 15-03)," ITA manu:scripts 15_03, Institute of Technology Assessment (ITA).
    15. Thor Berger & Carl Benedikt Frey, 2016. "Structural Transformation in the OECD: Digitalisation, Deindustrialisation and the Future of Work," OECD Social, Employment and Migration Working Papers 193, OECD Publishing.
    16. Thomsen, Stephan L, 2018. "Die Rolle der Computerisierung und Digitalisierung für Beschäftigung und Einkommen," Hannover Economic Papers (HEP) dp-645, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    17. Falck, Oliver & Heimisch-Roecker, Alexandra & Wiederhold, Simon, 2021. "Returns to ICT skills," Research Policy, Elsevier, vol. 50(7).
    18. Golo Henseke, 2019. "Against the Grain? Assessing Graduate Labour Market Trends in Germany Through a Task-Based Indicator of Graduate Jobs," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(2), pages 809-840, January.
    19. Pikos, Anna Katharina & Thomsen, Stephan L., 2016. "Rising Work Complexity but Decreasing Returns," IZA Discussion Papers 9878, IZA Network @ LISER.
    20. Hunt, Jennifer & Nunn, Ryan, 2022. "Has U.S. employment really polarized? A critical reappraisal," Labour Economics, Elsevier, vol. 75(C).
    21. Reimann, Mareike & Abendroth, Anja-Kristin & Diewald, Martin, 2020. "How digitalized is work in large German workplaces, and how is digitalized work perceived by workers? : A new employer-employee survey instrument," IAB-Forschungsbericht 202008, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    22. Pikos, Anna Katharina, 2017. "The task composition and work-related mental health - a descriptive study," Hannover Economic Papers (HEP) dp-610, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    23. Pikos, Anna Katharina, 2017. "The causal effect of multitasking on work-related mental health - the more you do, the worse you feel," Hannover Economic Papers (HEP) dp-609, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    24. Görlitz, Katja & Tamm, Marcus, 2016. "The returns to voucher-financed training on wages, employment and job tasks," Economics of Education Review, Elsevier, vol. 52(C), pages 51-62.
    25. bernhard Boockmann, 2014. "Offshoring Potential and Employment Dynamics," IAW Discussion Papers 111, Institut für Angewandte Wirtschaftsforschung (IAW).

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    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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