U-shaped wage curve and the Internet: The Colombian case

Abstract: While there is a broad consensus in the literature that there is a positive correlation between Internet usage and labor income in the richest countries, this link has not been proven in the developing world. This paper uses propensity score matching techniques and household survey data to...

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Autor principal:	Martin,Diego A.
Lenguaje:	English
Publicado:	Universidad de Chile. Departamento de Economía 2018
Materias:	Propensity score matching skills wage differentials internet income distribution
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862018000200173
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spelling	oai:scielo:S0718-528620180002001732019-03-27U-shaped wage curve and the Internet: The Colombian caseMartin,Diego A. Propensity score matching skills wage differentials internet income distribution Abstract: While there is a broad consensus in the literature that there is a positive correlation between Internet usage and labor income in the richest countries, this link has not been proven in the developing world. This paper uses propensity score matching techniques and household survey data to estimate the effect of the Internet on wages in Colombia, a country that has experienced a relatively rapid diffusion of information and communications technology in recent years. The empirical results confirm that there is a positive and statistically significant relationship between Internet use and income in this country. Consistent with evidence gathered on developed countries in previous studies, the empirical results also suggest that workers in the middle of the skill distribution receive the lowest wage premium for using the Internet. However, contrary to most evidence from developed countries, low skilled workers in Colombia enjoy the highest wage premium from Internet use, which illustrates the potential for new technologies to address inequality gaps between occupations.info:eu-repo/semantics/openAccessUniversidad de Chile. Departamento de EconomíaEstudios de economía v.45 n.2 20182018-12-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862018000200173en10.4067/S0718-52862018000200173
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Propensity score matching skills wage differentials internet income distribution
spellingShingle	Propensity score matching skills wage differentials internet income distribution Martin,Diego A. U-shaped wage curve and the Internet: The Colombian case
description	Abstract: While there is a broad consensus in the literature that there is a positive correlation between Internet usage and labor income in the richest countries, this link has not been proven in the developing world. This paper uses propensity score matching techniques and household survey data to estimate the effect of the Internet on wages in Colombia, a country that has experienced a relatively rapid diffusion of information and communications technology in recent years. The empirical results confirm that there is a positive and statistically significant relationship between Internet use and income in this country. Consistent with evidence gathered on developed countries in previous studies, the empirical results also suggest that workers in the middle of the skill distribution receive the lowest wage premium for using the Internet. However, contrary to most evidence from developed countries, low skilled workers in Colombia enjoy the highest wage premium from Internet use, which illustrates the potential for new technologies to address inequality gaps between occupations.
author	Martin,Diego A.
author_facet	Martin,Diego A.
author_sort	Martin,Diego A.
title	U-shaped wage curve and the Internet: The Colombian case
title_short	U-shaped wage curve and the Internet: The Colombian case
title_full	U-shaped wage curve and the Internet: The Colombian case
title_fullStr	U-shaped wage curve and the Internet: The Colombian case
title_full_unstemmed	U-shaped wage curve and the Internet: The Colombian case
title_sort	u-shaped wage curve and the internet: the colombian case
publisher	Universidad de Chile. Departamento de Economía
publishDate	2018
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862018000200173
work_keys_str_mv	AT martindiegoa ushapedwagecurveandtheinternetthecolombiancase
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U-shaped wage curve and the Internet: The Colombian case

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