Using data from the 1997 Skills Survey of the Employed British Workforce, we examine the
returns to computer skills in Britain. Many researchers, using information on computer use,
have concluded that wage differentials between computer users and non-users might, among
others, be due to differences in the embodiment of computer skills. Using unique information
on the importance, level of sophistication and effectiveness of computer use, we show that
computer skills do not yield significant labour market returns for most types of use. Examining
the returns to computer skills at different levels of sophistication of use, yields estimates
suggesting returns to computer skills at the highest level of sophistication of use only.
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