Computer Adoption and Returns in Transition

24 Pages Posted: 20 Apr 2007

See all articles by Yemisi Kuku

Yemisi Kuku

Iowa State University

Peter F. Orazem

Iowa State University and IZA; IZA Institute of Labor Economics

Rajesh Singh

Iowa State University

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Abstract

Across nine transition economies, it is the young, educated, English-speaking workers with the best access to local telecommunications infrastructures who work with computers. These workers earn about 25 percent more than do workers of comparable observable skills who do not use computers. Controlling for likely simultaneity between computer use at work and labour market earnings makes the apparent returns to computer use disappear. These results are corroborated using Russian longitudinal data on earnings and computer use on the job. High costs of computer use in transition economies suppress wages that firms can pay to their workers who use computers.

Suggested Citation

Kuku, Yemisi and Orazem, Peter Francis and Singh, Rajesh, Computer Adoption and Returns in Transition. Economics of Transition, Vol. 15, No. 1, pp. 33-56, January 2007, Available at SSRN: https://ssrn.com/abstract=965906 or http://dx.doi.org/10.1111/j.1468-0351.2007.00276.x

Yemisi Kuku

Iowa State University ( email )

613 Wallace Road
Ames, IA 50011
United States

Peter Francis Orazem (Contact Author)

Iowa State University and IZA ( email )

260 Heady Hall
Ames, IA 50011
United States
515-294-8656/515-294-7740 (Phone)
515-294-0221 (Fax)

IZA Institute of Labor Economics

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

Rajesh Singh

Iowa State University ( email )

613 Wallace Road
Ames, IA 50011
United States

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