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Money for Nothing and Your Chips for Free? The Anatomy of the PC Wage Differential

John Haisken-DeNew and Christoph Schmidt

No 859, Econometric Society World Congress 2000 Contributed Papers from Econometric Society

Abstract: The role of the computer at the workplace is examined in determining the wage structure in Germany. It is shown that the wage premium attributed to using a computer at work using cross-sectional results for 1997 is 7%. To control for unmeasured individual effects, we use a random effects and fixed effects estimator. The coefficient for computer usage at the workplace did NOT remain stable and although just barely significant, was reduced to mere 1% with individual fixed effects. We conclude that there are no computer usage wage differentials worth speaking of, once one controls adequately for unobserved individual heterogeneity.

Date: 2000-08-01
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Working Paper: Money for Nothing and Your Chips for Free?: The Anatomy of the PC Wage Differential (1999) Downloads
Working Paper: Money for Nothing and Your Chips for Free? The Anatomy of the PC Wage Differential (1999) Downloads
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