The Impact of Technological Change on Older Workers: Evidence from Data on Computer Use

New technologies like computers alter skill requirements. This paper explores two related effects of computers on older workers, who use computers less. The evolution of computer use in the Current Population Survey suggests that impending retirement reduces the incentive of older workers to acquire new skills. The Health and Retirement Study shows, further, that computer users retire later than non-users. This may arise because computer users choose to retire later and also because workers planning later retirement choose to acquire computer skills. Instrumental variables estimates suggest that computer use directly lowers the probability of retirement.