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http://hdl.handle.net/10419/20037
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| Title: | | What Happens When Agent T Gets a Computer? The Labor Market Impact of Cost Efficient Computer Adoption  |
| Authors: | | Borghans, Lex ter Weel, Bas |
| Issue Date: | | 2003 |
| Series/Report no.: | | IZA Discussion paper series 792 |
| Abstract: | | This paper offers a model to explain how computer technology has changed the labor market. It demonstrates that wage differentials between computer users and non-users are consistent with the fact that computers are first introduced in high-wage jobs because of cost efficiency. Furthermore, skill upgrading occurs because of a reemphasis on non-routine tasks after computer adoption. The model also reveals that neither differences in computer skills nor complementary skills are needed to explain wage differentials between computer users and non-users, skill upgrading, and the changing organization and intensity of work. Finally, the predicted effects on the wage structure following the diffusion of computers are consistent with the empirical evidence. |
| Subjects: | | wage differentials by skill computer use and skill |
| JEL: | | O33 J31 J30 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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