How Information Technology Affects Wages: Evidence Using Internet Usage As a Proxy for IT Skills

Ernest P. Goss and Joseph M. Phillips

Journal of Labor Research, 2002, vol. 23, issue 3, 463-474

Abstract: Many research studies have found a positive link between information technology (IT) in the work place and wages. Using data from the December, 1998 Current Population Survey, we examine the impact of IT, as proxied by on-the-job Internet usage, on wages. After controlling for selectivity bias, we estimate an average wage gain of 13.5 percent for on-the-job Internet usage. This wage advantage is consistent with estimates from studies based on data collected earlier in the 1990s examining the impact of computers in the workplace. We also tested for differences across industries in the manufacturing sector. We conclude that industries marked by less intensive use of technology offered significantly higher wage premiums than industries characterized by more intensive use of technology. This finding undermines the argument that higher wages go to those working in high-tech firms, not to those with high IT skills. We also find evidence that high-tech firms sort workers by skill level, which is also consistent with earlier studies.

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://transactionpub.metapress.com/link.asp?targe ... &id=WXFN24F0WJ4J8LMP (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tra:jlabre:v:23:y:2002:i:3:p:463-474

Access Statistics for this article

More articles in Journal of Labor Research from Transaction Publishers
Bibliographic data for series maintained by Christopher F. Baum ().