What happens when agent T gets a computer?
Borghans, Lex and ter Weel, Bas (2001). What happens when agent T gets a computer?. UNU-MERIT Research Memoranda. UNU-MERIT.
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Sub-type Working paper Author Borghans, Lex
ter Weel, BasTitle What happens when agent T gets a computer? Series Title UNU-MERIT Research Memoranda Volume/Issue No. 18 Publication Date 2001 Place of Publication Maastricht, NL Publisher UNU-MERIT Pages 51 Language eng Abstract During the last decade a great many authors have shown that computers have a large impact on skill demand, production processes, and the organization and intensity of work. Analyses have indicated that the rates of change of these variables have been the largest in the more computer- intensive sectors. Empirical findings, however, suggest that the effects of computers on the labor market are complicated and difficult to trace. This paper offers a simple model to explain how computers have changed the labor market. The model demonstrates that wage differentials between computer users and other workers are consistent with the observation that computers are first introduced in high-wage jobs because of cost efficiency. It also shows that neither computer skills nor complementary skills are needed to explain skill upgrading, changes in product characteristics, and the organization and intensity of work. Finally, it is shown that these findings shed a different light on the way computers have changed the labor market and on the changes to be expected following the further diffusion of computers. Copyright Holder UNU-MERIT Copyright Year 2001 Copyright type All rights reserved -
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