The Returns to Computer Use Revisited, Again

Benoit Dostie (), Rajshri Jayaramanz and Mathieu Trépanier

No 06-03, Cahiers de recherche from HEC Montréal, Institut d'économie appliquée

Abstract: Using North American data, we revisit the question first broached by Krueger (1993) and re-examined 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 per cent 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 (search for similar items in EconPapers)
JEL-codes: J30 J31 O30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2006-04
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Related works:
Working Paper: The Returns to Computer Use Revisited, Again (2006)
Working Paper: The Returns to Computer Use Revisited, Again (2006)
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