Abstract
This paper explores the impacts of skill-biased technical change measured by computer use on college wage differentials in China over six years from 2010 onward. We find a substantial wage premium for college educated workers, and the expansion of computer use could significantly increase the college wage premium, especially when controlling industry heterogeneities and geographic factors. This pattern, using dynamic analysis in the long run, is mainly driven by complementary effects between capital structure and skilled workers, namely college educated workers. Moreover, the results are consistent when adopting propensity score matching methods, or in the case of over-education, or adopting alternative measures of technical change and wage earnings.
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