Working Paper: NBER ID: w24276
Authors: Robert W. Fairlie; Peter Riley Bahr
Abstract: This paper provides the first evidence on the earnings, employment and college enrollment effects of computers and acquired skills from a randomized controlled trial providing computers to entering college students. We matched confidential administrative data from California Employment Development Department (EDD)/Unemployment Insurance (UI) system earnings records, the California Community College system, and the National Student Clearinghouse to all study participants for seven years after the random provision of computers. The experiment does not provide evidence that computer skills have short- or medium-run effects on earnings. These null effects are found along both the extensive and intensive margins of earnings (although the estimates are not precise). We also do not find evidence of positive or negative effects on college enrollment. A non-experimental analysis of CPS data reveals large, positive and statistically significant relationships between home computers, and earnings, employment and college enrollment, raising concerns about selection bias in non-experimental studies.
Keywords: Computers; Earnings; Employment; College Enrollment; Field Experiment
JEL Codes: I23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Home computer ownership (D19) | Earnings (J31) |
| Provision of computers (L86) | Earnings (J31) |
| Provision of computers (L86) | Employment (J68) |
| Provision of computers (L86) | College enrollment (I23) |