THE RETURNS TO COMPUTER USE REVISITED - HAVE PENCILS CHANGED THE WAGESTRUCTURE TOO

Are the large measured wage differentials for on-the-job computer use a true return to computer skills, or do they just reflect that higher wage workers use computers on their jobs? We examine this issue with t hree large cross-sectional surveys from Germany. First, we confirm tha t the estimated wage differential associated with computer use in Germ any is very similar to the U. S. differential. Second, we also measure large differentials for on-the-job use of calculators, telephones, pe ns or pencils, or for those who work while sitting down. We argue that these findings cast some doubt on the literal interpretation of the c omputer use wage differential as reflecting true returns to computer u se or skill.