Have Internet Changed the Wage Structure Too?

This paper investigates whether workers who use Internet at work earn a higher wage than otherwise similar workers who do not use Internet at work. By replicating Krueger’s analysis using recent Current Population Survey data sets, this study is able to compare the similarities and differences of the use of two revolutionary modern technologies, computer and Internet. Estimates suggest that while premiums to computer use have been persistent in the 1990s, premiums to Internet use decreased very rapidly over time and eventually disappeared with the rapid expansion in Internet use. Several results imply that there is little link between Internet use and its effect on wages, whereas the link between computer use and wages are clearer. JEL Classification: J31, O33