Document Type

Working Paper

Publication Date


Working Paper Number

WP #04021, 2006


Across nine transition economies, it is the young, educated, English-speaking workers with the best access to local telecommunications infrastructures that work with computers. These workers earn about 25% more than do workers of comparable observable skills who do not use computers. Controlling for likely simultaneity between computer use at work and labor 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 their workers who use computers.

Publication Status

Published in Economics of Transition, Vol. 15 no. 1 (January 2007): 33-56.

JEL Classification

O, P2, J31

File Format



41 pages