The Returns to Computer Use Revisited, Again
28 Pages Posted: 25 Apr 2006
Date Written: April 2006
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: Suggested Citation