Title

Computer Adoption and Returns in Transition

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

1-2007

Journal or Book Title

Economics of Transition

Volume

15

Issue

1

First Page or Article ID Number

33

Last Page

56

DOI

10.1111/j.1468-0351.2007.00276.x

Abstract

Across nine transition economies, it is the young, educated, English-speaking workers with the best access to local telecommunications infrastructures who work with computers. These workers earn about 25 percent more than do workers of comparable observable skills who do not use computers. Controlling for likely simultaneity between computer use at work and labour market earnings makes the apparent returns to computer use disappear. These results are corroborated using Russian longitudinal data on earnings and computer use on the job. High costs of computer use in transition economies suppress wages that firms can pay to their workers who use computers.

JEL Classification

O, P2, J31

Comments

This is a working paper of an article from Economics of Transition 15 (2007): 33, doi: 10.1111/j.1468-0351.2007.00276.x.