| John P. Haisken-DeNew, German Institute for Economic Research Christoph M. Schmidt, University of Heidelberg |
| Money for Nothing and Your Chips for Free? The Anatomy of the PC Wage Differential |
| Session: C-1-25 Friday 11 August 2000 by Haisken-DeNew, John P. |
| The role of the computer at the workplace is examined in determining the wage structure in Germany. It is shown that the wage premium attributed to using a computer at work using cross-sectional results for 1997 is 7%. To control for unmeasured individual effects, we use a random effects and fixed effects estimator. The coefficient for computer usage at the workplace did NOT remain stable and although just barely significant, was reduced to mere 1% with individual fixed effects. We conclude that there are no computer usage wage differentials worth speaking of, once one controls adequately for unobserved individual heterogeneity. |
| Submitted paper full-text in .pdf |