Using Methods of Treatment Evaluation to Estimate the Wage Effect of it Usage

Abstract

In this study, I analyze the relationship between IT use and wages in West Germany in 1998/99. I use two estimation approaches: regression based matching and matching on the propensity score. The richness of the data set favors the use of these approaches. The variable of main interest is the average treatment effect for the treated. I find that, given the extensive changes in workplaces that have occurred in recent decades, IT users would be worse off in terms of wages had they not started to use IT.

Keywords: Computer wage differential, matching

JEL Classification: J30, J31