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New technologies, wages, and worker selection

Author

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  • Entorf, Horst
  • Gollac, M.
  • Kramarz, Francis
Abstract
We study the impact of new technologies (NT) on wages and employment using a unique panel that matches data on individuals and on their firms. As found in the United States (Krueger (1993)), we show that computer users are better paid than non-users (between 15% and 20% more). But we also show that these workers were already better compensated before the introduction of the NTs. Total returns to computer use amount to 2%. Even when possible measurement errors are taken into account, total returns cannot exceed 4%, which is far from the cross-section estimates. Furthermore, computer users are protected from job losses as long as bad business conditions do not last too long. This result holds even after controlling for possible selection biases.
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Suggested Citation

  • Entorf, Horst & Gollac, M. & Kramarz, Francis, 1999. "New technologies, wages, and worker selection," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 24093, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    • Handle: RePEc:dar:wpaper:24093
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/24093/
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    References listed on IDEAS

    as
    1. David Autor & Lawrence Katz & Alan Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," Working Papers 756, Princeton University, Department of Economics, Industrial Relations Section..
    2. David Card & Francis Kramarz & Thomas Lemieux, 1999. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 843-877, August.
    3. John E. DiNardo & Jörn-Steffen Pischke, 1997. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 291-303.
    4. repec:fth:prinin:377 is not listed on IDEAS
    5. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1169-1213.
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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