Returns to ICT skills

Falck, Oliver; Heimisch-Roecker, Alexandra und Wiederhold, Simon (2021): Returns to ICT skills. In: Research Policy, Bd. 50, Nr. 7, 104064

Abstract

How important is mastering information and communication technology (ICT) on modern labor markets? We answer this question with unique data on ICT skills tested in 19 countries. Our two instrumental-variable models exploit technologically induced variation in broadband Internet availability that gives rise to variation in ICT skills across countries and German municipalities. We find statistically and economically significant returns to ICT skills. For instance, an increase in ICT skills similar to the gap between an average-performing and a topperforming country raises earnings by about 8 percent. One mechanism driving positive returns is selection into occupations with high abstract task content.

• Dokumententyp: Zeitschriftenartikel
• Fakultät: Volkswirtschaft
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• ISSN: 0048-7333
• Sprache: Englisch