| Abstract: |
Computers and ICT have changed the way we live and work. The latest WERS 2004
provides a snapshot of how using ICT at the workplace has changed our working
lives. Various studies have suggested that the use of a computer at work
boosted earnings by as much as 20%. Others suggest this reported impact is due
to unobserved heterogeneity. Using excellent data from the WERS
employer-employee matched data we compare OLS estimates with those from
estimations which include controls for establishments, industrial sectors and
occupations and use control function, treatment effects models and
Instrumental Variable estimation. We show that the results of OLS estimation
grossly overestimate the return to computer use but that including occupation
controls, reduces the return to between 3-10%. We explore the return on
different IT skills and also find a return to the intensity of computer use as
measured by the number of tasks a computer is used for. |