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The Returns to Computer Use Revisited, Again

Author

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  • Benoit Dostie
  • Rajshri Jayaraman
  • Mathieu Trépanier

Abstract

Using North American data, we revisit the question first broached by Krueger (1993) and re-examined by DiNardo and Pischke (1997) of whether there exists a real wage differential associated with computer use. Employing a mixed effects model to correct for both worker and workplace unobserved heterogeneity using matched employer-employee panel data, we find that computer users enjoy an almost 4 per cent wage premium over non-users. Failure to correct for the worker selection effect leads to a more than twofold overestimate of this premium, as does failure to correct for workplace unobserved heterogeneity.

Suggested Citation

  • Benoit Dostie & Rajshri Jayaraman & Mathieu Trépanier, 2006. "The Returns to Computer Use Revisited, Again," Cahiers de recherche 0614, CIRPEE.
    • Handle: RePEc:lvl:lacicr:0614
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    File URL: http://www.cirpee.org/fileadmin/documents/Cahiers_2006/CIRPEE06-14.pdf
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    Cited by:

    1. Fahmida Khatun & Syed Yusuf Saadat, 2021. "Returns to Computer Use in Bangladesh: An Econometric Analysis," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(1), pages 175-198, March.

    More about this item

    Keywords

    Wage determination; Computers; Mixed models; Linked employer-employee data;
    All these keywords.

    JEL classification:

    • 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
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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