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Computers, Fax Machines and Wages in Canada: What Really Matters?

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  • Drolet, Marie
  • Morissette, Rene

Abstract

Controlling for observable worker attributes, we find that computer use is associated with a wage premium of at most 14%. Following Dinardo and Pischke (1997), we examine the wage premium associated with other tools used on the job. While these authors find a significant wage premium for the use of pencils or for sitting down while working, we find a substantial and robust wage premium for the use of a fax machine. Using a variety of reasonable specifications of wage equations including both a computer use indicator and a fax use indicator, we consistently find a stronger effect for fax machines than for computers. Along with Dinardo and Pischke (1997), we argue that workers who use computers earn more than other employees not because of their computing skills per se, but rather because they have more other unobserved skills - innate or learned through school - than other employees.

Suggested Citation

  • Drolet, Marie & Morissette, Rene, 1998. "Computers, Fax Machines and Wages in Canada: What Really Matters?," Analytical Studies Branch Research Paper Series 1998126e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:1998126e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M1998126
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    References listed on IDEAS

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    Cited by:

    1. Handel, Michael J., 2003. "Implications of Information Technology for Employment, Skills, and Wages: A Review of Recent Research," MPRA Paper 80077, University Library of Munich, Germany.
    2. Cindy M. Cunningham & Robert D. Mohr, 2019. "Using tools to distinguish general and occupation-specific skills," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-11, December.
    3. Oosterbeek, Hessel & Ponce, Juan, 2011. "The impact of computer use on earnings in a developing country: Evidence from Ecuador," Labour Economics, Elsevier, vol. 18(4), pages 434-440, August.
    4. Chris N. Sakellariou & Harry A. Patrinos, 2004. "Technology, computers and wages: evidence from a developing economy," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 47(3-4), pages 543-543.
    5. G.R. Arabsheibani & J.M. Emami & A. Marin, 2004. "The Impact of Computer Use On Earnings in the UK," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(1), pages 82-94, February.

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