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Returns to ICT skills

Oliver Falck, Alexandra Heimisch-Roecker and Simon Wiederhold ()
Authors registered in the RePEc Author Service: Alexandra Heimisch-Röcker

Research Policy, 2021, vol. 50, issue 7

Abstract: How important is mastering information and communication technology (ICT) on modern labor markets? We answer this question with unique data on ICT skills tested in 19 countries. Our two instrumental-variable models exploit technologically induced variation in broadband Internet availability that gives rise to variation in ICT skills across countries and German municipalities. We find statistically and economically significant returns to ICT skills. For instance, an increase in ICT skills similar to the gap between an average-performing and a top-performing country raises earnings by about 8 percent. One mechanism driving positive returns is selection into occupations with high abstract task content.

Keywords: ICT skills; Broadband; Earnings; International comparisons (search for similar items in EconPapers)
JEL-codes: J31 K23 L96 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Related works:
Working Paper: Returns to ICT Skills (2016) Downloads
Working Paper: Returns to ICT skills (2016) Downloads
Working Paper: Returns to ICT Skills (2016) Downloads
Working Paper: Returns to ICT Skills (2015) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:50:y:2021:i:7:s0048733320301426

DOI: 10.1016/j.respol.2020.104064

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