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Computer Use and Earnings in Britain

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  • Peter Dolton
  • Gerry Makepeace

Abstract

This paper estimates various models of the effect of computer use on earnings using recent NCDS data. The cross-section estimates are large and significant while the standard fixed effects estimates are small or insignificant. The panel estimates change considerably once we allow the coefficients to differ across individuals. Conditional on assumptions about when individuals use computers, conventional panel estimates may not identify the crucial parameters and alternative methods are needed. We conclude that there was a substantial premium associated with computer use for some individuals in the UK. Copyright 2004 Royal Economic Society.

Suggested Citation

  • Peter Dolton & Gerry Makepeace, 2004. "Computer Use and Earnings in Britain," Economic Journal, Royal Economic Society, vol. 114(494), pages 117-129, March.
    • Handle: RePEc:ecj:econjl:v:114:y:2004:i:494:p:c117-c129
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    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • 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

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