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Use IT or Lose IT? The Impact of Computers on Earnings

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  • Peter Dolton
  • Gerry Makepeace
  • Helen Robinson

Abstract

The extent to which the impact of computer skills depends on how computers are used is investigated using British data from an establishment survey, cohort studies and the European E-Living survey. We examine the importance of activity and frequency of use in these various data sources. We find that the impact on earnings depends on which cohort of workers is examined and that there are differences over time. The regression results show that the use of computers for internet access and for email is positively significant across all of our datasets, although there are differences in the size of the effects between men and women.

Suggested Citation

  • Peter Dolton & Gerry Makepeace & Helen Robinson, 2007. "Use IT or Lose IT? The Impact of Computers on Earnings," CEE Discussion Papers 0082, Centre for the Economics of Education, LSE.
    • Handle: RePEc:cep:ceedps:0082
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    References listed on IDEAS

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    1. 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.
    2. Helen Robinson, 2003. "Gender and Labour Market Performance in the Recovery," Palgrave Macmillan Books, in: Richard Dickens & Paul Gregg & Jonathan Wadsworth (ed.), The Labour Market Under New Labour, chapter 15, pages 232-247, Palgrave Macmillan.
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    4. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October.
    5. Francis Green, 1998. "The Value of Skills," Studies in Economics 9819, School of Economics, University of Kent.
    6. Entorf, Horst & Kramarz, Francis, 1997. "Does unmeasured ability explain the higher wages of new technology workers?," European Economic Review, Elsevier, vol. 41(8), pages 1489-1509, August.
    7. Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000. "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis," Econometrica, Econometric Society, vol. 68(5), pages 1029-1054, September.
    8. 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.
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    Cited by:

    1. Lissitsa, Sabina & Chachashvili-Bolotin, Svetlana & Bokek-Cohen, Ya'arit, 2017. "Digital skills and extrinsic rewards in late career," Technology in Society, Elsevier, vol. 51(C), pages 46-55.
    2. Peter Dolton & Panu Pelkonen, 2007. "The Impact of Computer Use, Computer Skills and Computer Use Intensity: Evidence from WERS 2004," CEE Discussion Papers 0081, Centre for the Economics of Education, LSE.
    3. Giorgio Pietro, 2007. "The effect of computer use on earnings in Italy," Empirical Economics, Springer, vol. 33(2), pages 245-262, September.
    4. 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.
    5. Cindy Zoghi & Sabrina Wulff Pabilonia, 2007. "Which workers gain upon adopting a computer?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 40(2), pages 423-444, May.
    6. Hsin-Fan Chen & Long-Hwa Chen, 2007. "The role of computer use and English proficiency in gender wage inequality: Taiwanese evidence," Economics Bulletin, AccessEcon, vol. 10(16), pages 1-9.
    7. Cindy Zoghi & Sabrina Wulff Pabilonia, 2007. "Which workers gain upon adopting a computer?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 40(2), pages 423-444, May.
    8. repec:ebl:ecbull:v:10:y:2007:i:16:p:1-9 is not listed on IDEAS

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    More about this item

    Keywords

    ICT;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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