The increased diffusion of computers is one of the fundamental changes at workplaces in recent decades. While the majority of workers now spend a substantial fraction of their working day with a computer, research on the wage effect of computer use effectively came to a halt after DiNardo and...

Many researchers believe that the observed positive association between computer use and wages simply reflects unobserved heterogeneity: like pencils and other "white-collar" tools, computers are assigned to employees who possess productive attributes that would attract higher wages in any...