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Journal of Political Economy Vol. 118 No. 5 2010

Should the Personal Computer Be Considered a Technological Revolution? Evidence from U.S. Metropolitan Areas

Paul Beaudry1,2; Mark Doms3; Ethan Lewis4,5

1 National Bureau of Economic Research · 2 University of British Columbia · 3 Federal Reserve Bank of San Francisco · 4 Dartmouth College · 5 Dartmouth Hospital

Abstract

The introduction and diffusion of personal computers are widely viewed as a technological revolution. Using U.S. metropolitan area–level panel data, this paper asks whether links between PC adoption, educational attainment, and the return to skill conform to a model of technological revolutions in which the speed and extent of adoption are endogenous. The model implies that cities will adjust differently to the arrival of a more skill-intensive means of production, with the returns to skill increasing most where skill is abundant and its return is low. We show that the cross-city data fit many of the predictions of the model during the period 1980–2000, the PC diffusion era.

DOI
10.1086/658371
Volume
118
Issue
5
Pages
988-1036
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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