Faculty of Economics and Business Administration Publications Database

The Impact of New Technologies on Wages: Lessons from Matching Panels on Employees and on Their Firms

Kramarz, Francis
Volume: 5
Number: 2/4
Pages: 165 - 197
ISSN-Print: 1043-8599
Year: 1998
Keywords: Wages; Effect of technological innovations on; Business enterprises
Abstract: We study the impact on New Technologies (NT) on wages using a panel that matches data on individuals and on their firms. In his article on the same topic, Krueger (1993) did not give a definitive answer to the following question: if workers who use NT are better paid, is it because they are abler or because NT increases their productivity. We try to provide an answer to this question. Comparing cross-section estimates and individual fixed-effect estimates, we show that computer-based new technologies are used by abler workers. These workers learn and become more productive when they get more experienced with these NT. In terns of wage differentials, the introduction of computer-based NT contributes to a small increase. The use of firm-level data does not modify these conclusions.