The Returns to Computer Use Revisited, Again

28 Pages Posted: 25 Apr 2006

See all articles by Benoit Dostie

Benoit Dostie

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

Rajshri Jayaraman

University of Munich and CESifo

Mathieu Trépanier

Northwestern University - Kellogg School of Management

Date Written: April 2006

Abstract

Using North American data, we revisit the question first broached by Krueger (1993) and reexamined by DiNardo and Pischke (1997) of whether there exists a real wage differential associated with computer use. Employing a mixed effects model to correct for both worker and workplace unobserved heterogeneity using matched employer-employee panel data, we find that computer users enjoy an almost 4 percent wage premium over non-users. Failure to correct for the worker selection effect leads to a more than twofold overestimate of this premium, as does failure to correct for workplace unobserved heterogeneity.

Keywords: wage determination, computers, mixed models, linked employer-employee data

JEL Classification: J30, J31, O30

Suggested Citation

Dostie, Benoit and Jayaraman, Rajshri and Trépanier, Mathieu, The Returns to Computer Use Revisited, Again (April 2006). IZA Discussion Paper No. 2080, Available at SSRN: https://ssrn.com/abstract=898575

Benoit Dostie (Contact Author)

HEC Montreal - Institute of Applied Economics ( email )

3000, ch. de la Côte-Ste-Catherine
Montréal, Quebec H3T 2A7
Canada
514-340-6453 (Phone)
514-340-6469 (Fax)

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

IZA Institute of Labor Economics

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

Rajshri Jayaraman

University of Munich and CESifo ( email )

Schackstr. 4
Munich, 80539
Germany

HOME PAGE: http://www.lrz-muenchen.de/~ces/raji.htm

Mathieu Trépanier

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
51
Abstract Views
639
rank
451,921
PlumX Metrics