--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-9/the-link-between-technology-use-human-capital-productivity-and-wages-firm-level-evidence/" title: "The Link between Technology Use, Human Capital, Productivity and Wages: Firm-level Evidence" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T06:53:20+00:00" date_modified: "2026-07-13T06:53:20+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2004" ipm_keyword: - "Canada" - "education" - "firm-level" - "human capital" - "ICT" - "linked employer-employee" - "productivity" - "technology use" - "training" - "wages" - "Workplace and Employee Survey" ipm_research_theme: - "Sectoral and firm-level dynamics" - "Technology and innovation" ipm_country_focus: - "Canada" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # The Link between Technology Use, Human Capital, Productivity and Wages: Firm-level Evidence Canonical URL: https://csls.ca/ipm-archive/ipm-issue-9/the-link-between-technology-use-human-capital-productivity-and-wages-firm-level-evidence/ # The Link between Technology Use, Human Capital, Productivity and Wages: Firm-level Evidence [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-9-3-Turcotte-Rennison.pdf) Cite this article × Cite this article as: Turcotte, Julie, and Lori Whewell Rennison. 2004. “The Link between Technology Use, Human Capital, Productivity and Wages: Firm-level Evidence.” International Productivity Monitor, No. 9 (Fall 2004): 25–36. https://www.csls.ca/ipm-archive/ipm-issue-9/the-link-between-technology-use-human-capital-productivity-and-wages-firm-level-evidence/ ## Authors: - Julie Turcotte Economic Analysis and Forecasting Division, Department of Finance Canada - Lori Whewell Rennison Economic Analysis and Forecasting Division, Department of Finance Canada ## IPM Issue 9 Fall 2004 pp. 25–36 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [Appendix: Variable Definitions and Country/Sector Coverage for Regulatory Reform Analysis Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 1–18](https://csls.ca/ipm-archive/ipm-issue-49/appendix-variable-definitions-and-country-sector-coverage-for-regulatory-reform-analysis/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [Using Ecosystem Accounting to Integrate the Environment in Measures of Multifactor Productivity Carl Obst Fall 2024 | IPM Issue 47 | pp. 87–108](https://csls.ca/ipm-archive/ipm-issue-47/using-ecosystem-accounting-to-integrate-the-environment-in-measures-of-multifactor-productivity/) [Eroding Natural Capital: An Alternative Explanation for the Secular Decline in Productivity Growth Christina Caron Fall 2024 | IPM Issue 47 | pp. 109–147](https://csls.ca/ipm-archive/ipm-issue-47/eroding-natural-capital-an-alternative-explanation-for-the-secular-decline-in-productivity-growth/) [How Does Industrial Policy Impact Output, Hours and Productivity? The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This article uses Statistics Canada’s 1999 Workplace and Employee Survey (WES) — a linked employer-employee dataset — to examine how technology use and human capital affect firm-level productivity and worker wages in Canada. It finds that productivity is higher where technology use is more intensive, university-educated workers are more prevalent, participation in formal training is greater, and computer training is provided. The article also finds that technology and human capital are complementary in generating productivity gains, and that a substantial portion of the productivity benefits are passed on to workers in the form of higher wages. Cet article utilise l’Enquête sur le milieu de travail et les employés (EMTE) de Statistique Canada de 1999 — une base de données couplant employeurs et employés — pour examiner comment l’utilisation des technologies et le capital humain influent sur la productivité au niveau de l’entreprise et sur les salaires des travailleurs au Canada. Il constate que la productivité est plus élevée là où l’utilisation des technologies est plus intensive, où les travailleurs ayant une formation universitaire sont plus nombreux, où la participation à la formation formelle est plus grande et où une formation informatique est offerte. L’article constate également que la technologie et le capital humain sont complémentaires dans la génération de gains de productivité, et qu’une part substantielle des avantages de productivité est transférée aux travailleurs sous forme de salaires plus élevés. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-9-3-Turcotte-Rennison.pdf)