Computer Adoption and Returns in Transition
Journal or Book Title
Economics of Transition
First Page or Article ID Number
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.
O, P2, J31
Kuku, Yemisi; Orazem, Peter F.; and Singh, Rajesh, "Computer Adoption and Returns in Transition" (2007). Economics Publications. 316.