COMPUTER SKILLS AND WAGES*

Data from the 1993 Survey of Training and Education show that 52 per cent of males and 60 per cent of females had at some time used a computer. An analysis using earnings functions reveals that computer usage is associated with a wage premium of between 12 and 16 per cent. Experiments show that omission of a variable recording computer usage from a wage equation will result in a bias of between 10 and 15 per cent in the estimated return to a year of schooling and similar distortion to the estimated return to experience.