Internet Job Search and Labor Market Outcome

This study examines the effect of the use of internet job search (IJS) on individual wages. The data utilized in the study are obtained from the Internet and Computer Use Dictionary in the Current Population Survey of September 2001 and October 2003. An Oaxaca Decomposition is used to examine the extent to which wage differences are influenced by IJS. The results show that accessibility to the internet is a crucial factor in the decision of an individual to utilize the internet for job search activities. However, no clear evidence exists that IJS increases individual wages. Additionally, the study also demonstrates that IJS is subject to self-selection bias. Thus, failure to control for self-selection bias results in a very serious bias in estimation.