Computer Adoption and Returns in Transition: Theory Appendix

Peter Orazem (), Rajesh Singh () and Yemisi Kuku

Staff General Research Papers from Iowa State University, Department of Economics

Abstract: Across nine transition economies, it is the young, educated, English-speaking workers with the best access to local telecommunications infrastructures that work with computers. These workers earn about 25% more than do workers of comparable observable skills who do not use computers. Controlling for likely simultaneity between computer use at work and labor 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 their workers who use computers.

Keywords: Computer Adoption; Earnings; Returns; Sorting; Technology; Eastern Europe; Central Asia (search for similar items in EconPapers)
JEL-codes: O0 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic
Date: 2006-09-26

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Persistent link: http://EconPapers.repec.org/RePEc:isu:genres:11422

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