Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33426 
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers No. 2080
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
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 to correct for both worker and workplace unobserved heterogeneity using matched employer-employee panel data, we find that computer users enjoy an almost 4 per cent wage premium over non-users. Failure to correct for the worker selection effect leads to a more than twofold overestimate of this premium, as does failure to correct for workplace unobserved heterogeneity.
Subjects: 
wage determination
computers
mixed models
linked employer-employee data
JEL: 
J30
J31
O30
Document Type: 
Working Paper

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