Does Future Pc Use Determine Our Wages Today? - Evidence from German Panel Data

24 Pages Posted: 3 Oct 2003

See all articles by Silke Anger

Silke Anger

Humboldt University of Berlin - Faculty of Business

Johannes Schwarze

University of Bamberg; German Institute for Economic Research (DIW Berlin); IZA Institute of Labor Economics

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Abstract

Using 1985-99 data from the German Socio-Economic Panel Study (GSOEP) we confirm the hypothesis that existing computer wage premiums are determined by ability or other unobserved individual characteristics rather than by productivity effects. In addition to the conventional longitudinal regression analysis, the two competing hypotheses were tested by employing future PC variables in the wage regressions in order to obtain a further control for worker heterogeneity. The finding that future PC variables have a statistically significant effect on current wages leads us to conclude that computer wage differentials can be attributed to worker heterogeneity rather than to computer-induced productivity.

Suggested Citation

Anger, Silke and Schwarze, Johannes, Does Future Pc Use Determine Our Wages Today? - Evidence from German Panel Data. Available at SSRN: https://ssrn.com/abstract=450962

Silke Anger

Humboldt University of Berlin - Faculty of Business ( email )

Spandauer Str. 1
Berlin, D-10178
Germany

Johannes Schwarze (Contact Author)

University of Bamberg ( email )

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Bamberg 96045
Germany
+49 951 863 2600 (Phone)
+49 951 863 5569 (Fax)

German Institute for Economic Research (DIW Berlin)

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Berlin, 10117
Germany

IZA Institute of Labor Economics

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

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