Wages and Workplace Computer Use in Chile 1 José Miguel Benavente

This paper presents robust evidence regarding the impact of computer use at the workplace in Chile for the period 2000-2006. The main contribution is to present evidence in a developing country using matching techniques, assuming a homogeneous treatment effect. Wage impact is then measured through the nearest neighbor and kernel estimator. Results consistently show that there is a premium associated to the use of computers at the workplace, which is interpreted as an increase in the person’s productivity derived from the inclusion of an additional production factor, i.e. the computer. All of this is consistent with a model where penetration of computers decreases this premium, something that actually has occurred in Chile during this period. In effect, the estimates show a premium about 26% for 2000 but in 2006 it goes down to 16%.