How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984-1989

47 Pages Posted: 26 May 2004 Last revised: 19 Jul 2010

See all articles by Alan B. Krueger

Alan B. Krueger

Princeton University - Industrial Relations Section; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Date Written: October 1991

Abstract

This paper examines whether employees who use a computer at work earn a higher wage rate than otherwise similar workers who do not use a computer at work. The analysis primarily relies on data from the Current Population Survey and the High School and Beyond Survey. A variety of statistical models are estimated to try to correct for unobserved variables that might be correlated with both job-related computer use and earnings. The estimates suggest that workers who use computers on their job earn roughly a 10 to 15 percent higher wage rate. In addition, the estimates suggest that the expansion in computer use in the l980s can account for between one-third and one-half of the observed increase in the rate of return to education, Finally, occupations that experienced greater growth in computer use between 1984 and 1989 also experienced above average wage growth.

Suggested Citation

Krueger, Alan B., How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984-1989 (October 1991). NBER Working Paper No. w3858. Available at SSRN: https://ssrn.com/abstract=338863

Alan B. Krueger (Contact Author)

Princeton University - Industrial Relations Section ( email )

Princeton, NJ 08544-2098
United States
609-258-4046 (Phone)
609-258-2907 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
84
Abstract Views
1,874
rank
298,696
PlumX Metrics