The Returns to General versus Job-Specific Skills: the Role of Information and Communication Technology

Rebecca Riley and Simon Kirby ()

No 274, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: This paper examines the effect of information and communication technologies (ICT) on the return paid to two different types of skill: general skills, acquired through schooling and work experience, and job-specific skills, acquired by experience in a particular job. Using the UK Labour Force Survey we estimate skill returns in different industries over the period 1994-2001. We evaluate the marginal effect on these returns of the ICT intensity of industry capital and find that the shift towards ICT capital has been associated with a rise in the return to general skills and a reduction in the return to job-specific experience.

Date: 2006-06
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