Start Date

11-12-2016 12:00 AM

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This paper examines returns to digital skills (e.g., the ability to use computers) by analyzing recent microdata on individual wages in India. Our findings suggest that individuals who have digital skills earn 10.9% higher wages than those without digital skills. We also find evidence for complementarity between education and digital skills at the individual level. Returns to digital skills also vary by occupation and location of computer use (whether at the office or in the home). These findings complement prior research on returns to computer skills, and they inform policy interventions and debates about giving away computers or laptops to citizens or to students, which some consider a waste of taxpayer money or responding to populist pressures.

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Dec 11th, 12:00 AM

The Returns to Digital Skills: Evidence from India, 2005-2011

This paper examines returns to digital skills (e.g., the ability to use computers) by analyzing recent microdata on individual wages in India. Our findings suggest that individuals who have digital skills earn 10.9% higher wages than those without digital skills. We also find evidence for complementarity between education and digital skills at the individual level. Returns to digital skills also vary by occupation and location of computer use (whether at the office or in the home). These findings complement prior research on returns to computer skills, and they inform policy interventions and debates about giving away computers or laptops to citizens or to students, which some consider a waste of taxpayer money or responding to populist pressures.