Computer skills, non-routine tasks, and wage premium: A longitudinal study

Authors:
Gang Peng;Rangamohan V. Eunni
Affiliations:
Department of Management, Williamson College of Business Administration, Youngstown State University, Youngstown, OH 44555, United States;Department of Management, Williamson College of Business Administration, Youngstown State University, Youngstown, OH 44555, United States
Venue:
The Journal of Strategic Information Systems
Year:
2011

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Abstract

In this study, we investigate whether and how employees' computer skills are rewarded in the workplace applying the theoretical lens of labor economics. Analyzing data from the Current Population Surveys for the period 1984-2003, we found strong evidence that employees are rewarded both for the depth as well as the breadth of their computer skills, and that the computer skills wage premium follows an inverted-U shape over time. We also found that the complementarity between computer skills and non-routine tasks is a major factor contributing to the wage premium, and that such contribution increases over time.