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Impact of computer skills on wages in USA

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  • Shah Danyal
  • Pankaj Maskara
  • Annaheeta Naqvi

Abstract

Using US NLSY panel data set, staggered every 2 years from 2000 to 2006 for a cross section of 12 686 individuals, we investigate the effect of computer skills on wages. We use the definition of computer skills as having a personal computer with Microsoft Windows at home. Unlike most previous studies in the United States, which used instrumental variables for controlling the unobserved factors, we use fixed-effects estimation methodology. Based on the unique data set and the robust fixed-effects estimation, we find that individuals possessing computer skills earn a wage premium.

Suggested Citation

  • Shah Danyal & Pankaj Maskara & Annaheeta Naqvi, 2011. "Impact of computer skills on wages in USA," Applied Economics Letters, Taylor & Francis Journals, vol. 18(11), pages 1077-1081.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:11:p:1077-1081
    DOI: 10.1080/13504851.2010.524607
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    References listed on IDEAS

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    1. Sabrina Wulff Pabilonia & Cindy Zoghi, 2005. "Returning to the Returns to Computer Use," American Economic Review, American Economic Association, vol. 95(2), pages 314-317, May.
    2. Alan B. Krueger, 1993. "How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984–1989," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(1), pages 33-60.
    3. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    4. 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, President and Fellows of Harvard College, vol. 112(1), pages 291-303.
    5. Harry A. Krashinsky, 2004. "Do Marital Status and Computer Usage Really Change the Wage Structure?," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
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    Cited by:

    1. Joaquin Marandino & Phanindra V. Wunnava, 2017. "The Effect of Access to Information and Communication Technology on Household Labor Income: Evidence from One Laptop Per Child in Uruguay," Economies, MDPI, vol. 5(3), pages 1-10, September.

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