Abstract
Many research studies have found a positive link between information technology (IT) in the work place and wages. Using data from the December, 1998 Current Population Survey, we examine the impact of IT, as proxied by on-the-job Internet usage, on wages. After controlling for selectivity bias, we estimate an average wage gain of 13.5 percent for on-the-job Internet usage. This wage advantage is consistent with estimates from studies based on data collected earlier in the 1990s examining the impact of computers in the workplace. We also tested for differences across industries in the manufacturing sector. We conclude that industries marked by less intensive use of technology offered significantly higher wage premiums than industries characterized by more intensive use of technology. This finding undermines the argument that higher wages go to those working in high-tech firms, not to those with high IT skills. We also find evidence that high-tech firms sort workers by skill level, which is also consistent with earlier studies.
| Original language | English |
|---|---|
| Pages (from-to) | 463-474 |
| Number of pages | 12 |
| Journal | Journal of Labor Research |
| Volume | 23 |
| Issue number | 3 |
| State | Published - 2002 |
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All Science Journal Classification (ASJC) codes
- Management of Technology and Innovation
- Organizational Behavior and Human Resource Management
- Strategy and Management
Cite this
How information technology affects wages : Evidence using Internet usage as a proxy for IT skills. / Goss, Ernest; Phillips, Joseph M.
In: Journal of Labor Research, Vol. 23, No. 3, 2002, p. 463-474.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - How information technology affects wages
T2 - Evidence using Internet usage as a proxy for IT skills
AU - Goss, Ernest
AU - Phillips, Joseph M.
PY - 2002
Y1 - 2002
N2 - Many research studies have found a positive link between information technology (IT) in the work place and wages. Using data from the December, 1998 Current Population Survey, we examine the impact of IT, as proxied by on-the-job Internet usage, on wages. After controlling for selectivity bias, we estimate an average wage gain of 13.5 percent for on-the-job Internet usage. This wage advantage is consistent with estimates from studies based on data collected earlier in the 1990s examining the impact of computers in the workplace. We also tested for differences across industries in the manufacturing sector. We conclude that industries marked by less intensive use of technology offered significantly higher wage premiums than industries characterized by more intensive use of technology. This finding undermines the argument that higher wages go to those working in high-tech firms, not to those with high IT skills. We also find evidence that high-tech firms sort workers by skill level, which is also consistent with earlier studies.
AB - Many research studies have found a positive link between information technology (IT) in the work place and wages. Using data from the December, 1998 Current Population Survey, we examine the impact of IT, as proxied by on-the-job Internet usage, on wages. After controlling for selectivity bias, we estimate an average wage gain of 13.5 percent for on-the-job Internet usage. This wage advantage is consistent with estimates from studies based on data collected earlier in the 1990s examining the impact of computers in the workplace. We also tested for differences across industries in the manufacturing sector. We conclude that industries marked by less intensive use of technology offered significantly higher wage premiums than industries characterized by more intensive use of technology. This finding undermines the argument that higher wages go to those working in high-tech firms, not to those with high IT skills. We also find evidence that high-tech firms sort workers by skill level, which is also consistent with earlier studies.
UR - http://www.scopus.com/inward/record.url?scp=0035998814&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0035998814&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:0035998814
VL - 23
SP - 463
EP - 474
JO - Journal of Labor Research
JF - Journal of Labor Research
SN - 0195-3613
IS - 3
ER -