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IZA
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Are Computer Skills the New Basic Skills? The Returns to Computer, Writing and Math Skills in Britain
by
Lex Borghans, Bas ter Weel
(April 2003)
published in: Labour Economics, 2004, 11 (1), 85-98
Abstract:
The large increase in computer use has raised the question whether people have to be
taught computer skills before entering the labour market. Using data from the 1997 Skills
Survey of the Employed British Workforce, we argue that neither the increase in computer
use nor the fact that particularly higher skilled workers use a computer provides evidence that
computer skills are valuable. We compare computer skills with writing and math skills and
test whether wages vary with computer skills, given the specific use that is made of
computers. The regression results show that while the ability to write documents and to carry
out mathematical analyses yields significant labour-market returns, the ability to effectively
use a computer has no substantial impact on wages. These estimates suggest that writing
and math can be regarded as basic skills, but that the higher wages of computer users are
unrelated to computer skills.
Text: See Discussion Paper No. 751
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