An analysis of on-the-job computer use shows that such use is more common in metro areas than in nonmetro areas. A substantial wage premium, 10 to 11 percent, is associated with using a computer on the job, even after other job and worker characteristics are taken into account. However, this wage premium accounts for only a small proportion of the wage differences between metro and nonmetro areas. In nonmetro areas, the computer use wage premium is only about 6 percent. This suggests that computer literacy skills may only modestly advance the earnings of low-wage workers within their current occupations in rural areas.
Details
Title
Wage Premiums for On-the-Job Computer Use: A Metro and Nonmetro Analysis
Record Identifier
https://ageconsearch.umn.edu/record/334715
Language
English
Total Pages
37
Note
Data for this analysis have been taken from responses to the Current Population Survey (CPS). The CPS is conducted monthly by the U.S. Census Bureau to collect data on employment and unemployment. The October 1997 CPS asked a variety of questions about computer use on the job, at home, and at school, and specifically "Does (person's name) directly use a computer at work?" Data for this survey were collected from a sample of approximately 48,000 households, chosen to represent the civilian noninstitutional population of the United States. The sample covered by this analysis includes respondents who were employed, who were asked about weekly earnings in the October survey (a quarter of all respondents are asked about earnings in any single month), and who responded to all of the questions that are used in the analysis, for a total of about 10,000 unweighted observations.
Series Statement
Rural Development Research Report No. 95
