Returns to Computer Use and Organizational Practices of the Firm

IZA Discussion Paper No. 1541

41 Pages Posted: 30 Mar 2005

See all articles by Benoit Dostie

Benoit Dostie

HEC Montreal - Institute of Applied Economics; IZA Institute of Labor Economics

Mathieu Trépanier

Northwestern University - Kellogg School of Management

Date Written: March 2005

Abstract

In this paper, we test the hypothesis that computer use will lead to productivity gains only if the firm uses an appropriate set of organizational practices. Detailed data on organizational practices and workers' compensation are obtained through a Canadian longitudinal linked employer-employee database called the Workplace and Employee Survey (WES). Linked data allow us to take into account both worker and firm unobserved heterogeneity through the estimation of a linear mixed model of wage determination. Our results suggest a small but positive computer-wage premium whose size is related to a set of organizational practices.

Keywords: wage determination, human capital, computers, mixed models, linked employer-employee data, organizational practices of the firm

JEL Classification: D21, J30, J31, O33

Suggested Citation

Dostie, Benoit and Trépanier, Mathieu, Returns to Computer Use and Organizational Practices of the Firm (March 2005). IZA Discussion Paper No. 1541, Available at SSRN: https://ssrn.com/abstract=695223

Benoit Dostie (Contact Author)

HEC Montreal - Institute of Applied Economics ( email )

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Montréal, Quebec H3T 2A7
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514-340-6453 (Phone)
514-340-6469 (Fax)

HOME PAGE: http://www.hec.ca/profs/benoit.dostie.html

IZA Institute of Labor Economics

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Germany

Mathieu Trépanier

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

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