Faculty of Economics and Business Administration Publications Database

New Technologies, Wages, and Worker Selection

Gollac, Michel
Kramarz, Francis
Volume: 17
Number: 3
Pages: 464 - 491
Month: July
ISSN-Print: 0734-306X
Link External Source: Online Version
Year: 1999
Abstract: We study the effect of new technologies (NT) on wages and employment using a unique panel that matches data on individuals and on their firms. As in the United States, we show that computer users are better paid than nonusers (15%–20% more). But these workers were already better compensated before the introduction of the NTs. Total returns to computer use amount to 2%. Measurement errors do not affect our 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.