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Computer Adoption and Returns in Transition

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  • Kuku, Yemisi
  • Orazem, Peter F.
  • Singh, Rajesh

Abstract

Across nine transition economies, it is the young, educated, English-speaking workers with the best access to local telecommunications infrastructures who work with computers. These workers earn about 25 percent more than do workers of comparable observable skills who do not use computers. Controlling for likely simultaneity between computer use at work and labour market earnings makes the apparent returns to computer use disappear. These results are corroborated using Russian longitudinal data on earnings and computer use on the job. High costs of computer use in transition economies suppress wages that firms can pay to their workers who use computers.

Suggested Citation

  • Kuku, Yemisi & Orazem, Peter F. & Singh, Rajesh, 2007. "Computer Adoption and Returns in Transition," ISU General Staff Papers 200701010800001227, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200701010800001227
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    Cited by:

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    3. Vinod Mishra & Russell Smyth, 2014. "Technological Change and Wages in China: Evidence from Matched Employer–Employee Data," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 123-138, February.
    4. Wojciech Hardy & Roma Keister & Piotr Lewandowski, 2018. "Educational upgrading, structural change and the task composition of jobs in Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(2), pages 201-231, April.

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    More about this item

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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