The Link between Technology Use, Human Capital, Productivity and Wages: Firm-level Evidence

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Abstract

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.

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