The Returns to Computer Use Revisited, Again

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 30.08.2006, 12:15 - 13:30


Presentation by 

Rajshri Jayaraman (European School of Management and Technology (ESMT))


Using North American data, we revisit the question first broached by Krueger (1993) and re-examined by DiNardo and Pischke (1997) of whether there exists a real wage differential associated with computer use. Employing a mixed effects model with matched employer-employee data to correct for the fact that workers and workplaces that use computers are self-selected, we find that computer users enjoy an almost 4 per cent wage premium over non-users. Failure to correct for worker and workplace selection effect leads to a more than twofold overestimate of this premium.

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