Impact of computer skills on wages in USA

Abstract

Using US NLSY panel data set, staggered every 2 years from 2000 to 2006 for a cross section of 12 686 individuals, we investigate the effect of computer skills on wages. We use the definition of computer skills as having a personal computer with Microsoft Windows at home. Unlike most previous studies in the United States, which used instrumental variables for controlling the unobserved factors, we use fixed-effects estimation methodology. Based on the unique data set and the robust fixed-effects estimation, we find that individuals possessing computer skills earn a wage premium.