%0 Report
        %A Borghans, Lex
%A Weel, Bas ter
        %T What Happens When Agent T Gets a Computer? The Labor Market Impact of Cost Efficient Computer Adoption
        %D 2003
        %8 2003 Jun
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 792
        %U https://www.iza.org/publications/dp792
        %X This paper offers a model to explain how computer technology has changed the labor
market. It demonstrates that wage differentials between computer users and non-users are
consistent with the fact that computers are first introduced in high-wage jobs because of cost
efficiency. Furthermore, skill upgrading occurs because of a reemphasis on non-routine tasks
after computer adoption. The model also reveals that neither differences in computer skills
nor complementary skills are needed to explain wage differentials between computer users
and non-users, skill upgrading, and the changing organization and intensity of work. Finally,
the predicted effects on the wage structure following the diffusion of computers are consistent
with the empirical evidence.
        %K wage differentials by skill
%K computer use and skill