THE BENEFITS OF USING A COMPUTER AT WORK The typical user of computers and information technology (IT) at work is educated, young and female. She is likelier to work in a large than small company, and has more control over her job than her non-IT using peers. These are among the findings of research by Peter Dolton and Panu Pelkonen, which has looked at the incidence of computer use in the workplace and whether it boosts employees’ earnings. The study also finds that when observable worker characteristic such as age and education, workplace and occupation are taken into account, workers who use a computer earn between 2.6% and 10% more. The return to computer use is higher for men than women: for men it is 5-11%, while for women it is 0-7%. Computers and IT have changed the way we live and work. The latest Workplace and Employment Relations Survey 2004 (WERS) provides a snapshot of how using IT at the workplace has changed working lives in the UK. The study uses this data to provide a description of how IT is used in firms and assesses the return to earnings generated by the use of this technology. Various studies have suggested that the use of a computer at work has boosted earnings by as much as 15-20%. Others suggest that the effect is negligible. This study seeks to clarify the differences in these estimates using the excellent WERS data. The researchers find that: • The typical IT user is educated, young and female. She is likelier to work in a large than small company, and has more control over her job than her non-IT using peers. • On average, IT users work 3 hours longer weeks than non-IT users, and do not report higher job satisfaction than their peers without the technology. • The most common uses of computers are e-mail (59% of workers), word processing (56%), data entry (45%) and record keeping (44%). • Computer use is most prevalent in financial services, where 99% use it. The lowest level is in hotels and restaurants, where 40% use computers. • The professions in general are divided into those where IT use is very common, and to those where it is rather uncommon. The professions with highest rates of computer use are among accountants, lawyers, civil servants, and policemen, 100% of whom use computers. • Some of the lowest rates of computer use are among cleaners (10%), electricians (26%) and drivers (28%). • If individual characteristics and occupation are disregarded, IT users earn on average £10.80 per hour, while those who do not use IT earn £7.30 per hour. • Controlling for a person's characteristics and where they work, then the results show that computer use boosts earnings and it does so irrespective of the worker's workplace, occupation or industry. • When observable worker characteristic such as age and education, workplace and occupation are taken into account, workers who use a computer earn between 2.6-10% more. This is likely to be explained by the fact that workers with better computer skills land in computer-related jobs, and the difference in pay reflects such skills. • The return to computer use is higher for men than women; for men it is 5-11%, while for women it is 0-7%. ENDS Notes for editors: ‘The Incidence and Impact of Computer Use: Evidence from WERS 2004’ by Peter Dolton and Panu Pelkonen was presented at the Royal Economic Society’s 2007 Annual Conference at the University of Warwick, 11-13 April. Peter Dolton is at Royal Holloway College, University of London, and the Centre for Economic Performance (CEP) at the London School of Economics. Panu Pelkonen is at CEP. For further information: contact Peter Dolton on 01784-443378 (email: peter.dolton@rhul.ac.uk); or Romesh Vaitilingam on 07768-661095 (email: romesh@compuserve.com). . USING A COMPUTER AT WORK The typical user of computers and information technology (IT) at work is educated, young and female. She is likelier to work in a large than small company, and has more. employees’ earnings. The study also finds that when observable worker characteristic such as age and education, workplace and occupation are taken into account, workers who use a computer earn between. that computer use boosts earnings and it does so irrespective of the worker's workplace, occupation or industry. • When observable worker characteristic such as age and education, workplace