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Title:Understanding the technology of computer technology diffusion: explaining computer adoption patterns and implications for the wage structure PDF Logo
Authors:Borghans, Lex
ter Weel, Bas
Issue Date:2008
Series/Report no.:IZA discussion papers 3792
Abstract:We review the empirical literature about the implications of the computerization of the labor market to see whether it can explain observed computer adoption patterns and (long-term) changes in the wage structure. Evidence from empirical micro studies turns out to be inconsistent with macro studies that are based on CES production functions. We propose a micro foundation for the CES production function that allows for changes in the underlying structure. We adapt the macro model by incorporating computer skills, complementary skills and fixed costs for computer technology usage suggested by the micro literature. It turns out that fixed costs for computer technology usage explain different patterns of computer adoption and diffusion between several types of workers and countries; it also provides very plausible patterns of the timing of wage inequality and developments over time.
Subjects:Wage level of structure
computer technology
technology diffusion
JEL:J31
Persistent Identifier of the first edition:urn:nbn:de:101:1-20081126657
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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