Work

The returns to computer use in the Chinese labor market

Year: 2023

Type: article

Abstract: With rising wages and increasing maturity of computer technology, computer use in the workplace is becoming increasingly common. Based on data from an urban labor survey, 58 percent of urban workers used computers at work in 2016. Using computer price and density as instrumental variables, we identify the estimation bias from the simultaneous determination of computer use and its productivity effect. We further identify the productivity effect based on computer use frequency. With the above econometric issues taken into account, computer use at work significantly boosts labor productivity and increases workers' wage returns by 48.4 percent.

Source: China Economic Quarterly International

DOI: 10.1016/j.ceqi.2023.06.001

Authors: Yang Du, Peng Jia, Albert Park

Institutions: Chinese Academy of Social Sciences, Institute of Population and Labor Economics, Hong Kong University of Science and Technology, Asian Development Bank

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $700