Do computer skills affect worker employment? An empirical study from CPS surveys

Abstract

With the penetration of information technology into every walk of business, computer skills become increasingly valued in today's workplaces. While studies have revealed that computer skills can improve productivity, solve complex problems, create new businesses, and earn wage premium, few studies have investigated the role computer skills can potentially play for worker employment. Based on theories of human capital and social capital, this study develops hypotheses about how computer skills affect worker employment, and further test them using matched US Current Population Surveys (CPS). It finds that computer skills not only mitigate worker displacement but also facilitate reemployment for displaced workers, particularly for reemployment at distant locations. In addition, computer skills are more conducive to managerial and professional jobs in comparison to other types of jobs. This study bears both theoretical and practical implications.