How Computers Have Changed the Wage Structure: Evidence From Microdata, 1984-89

Author
Keywords
Abstract

This paper examines whether employees who use a computer at work earn
a higher wage rate than otherwise similar workers who do not use a computer
at work. The analysis primarily relies on data from the Current Population
Survey and the High School and Beyond Survey. A variety of statistical
models are estimated to try to correct for unobserved variables that might
be correlated with both job-related computer use and earnings. The
estimates suggest that workers who use computers on their job earn roughly
a 10 to 15 percent higher wage rate. In addition, the estimates suggest
that the expansion in computer use in the 1980s can account for between
one-third and one-half of the observed increase in the rate of return to
education. Finally, occupations that experienced greater growth in
computer use between 1984 and 1989 also experienced above average wage
growth.

Year of Publication
1991
Number
291
Date Published
08/1991
Publication Language
eng
Citation Key
Quarterly Journal of Economics, Vol 108, No. 1, February 1993
URL
Working Papers