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% wage premium over nonusers. Failure to correct for worker and workplace selection effect leads to a more than twofold overestimate of this premium.
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Document Type: Research Article
Institute of Applied Economics, HEC Montreal, Montreal, Quebec H3T 2A7, Canada
Center for Economic Studies, CESifo and University of Munich, Munich, Germany
Kellogg School of Management, Northwestern University, Evanston, IL, USA
Publication date: 2010-12-01
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