Do Older Workers Have More Trouble Using a Computer Than Younger Workers?

Technological change is often perceived to harm the position of the incumbent workforce compared to new entrants. Particularly the labor-market position of older workers, who are thought to have lower abilities or incentives to acquire new skills, might be deteriorated by the arrival of new technologies. Computers are a major example of such a new technology. A lack of skills might hamper computerization of the jobs of older workers and decrease the value of their existing skills. Several authors have shown however that the age pattern of computer use does not seem to fit in this view and argued that the relationship between age, computer use and skills is more complex. This paper examines the computer use of older workers from the perspective that the availability of skills is not the only factor relevant for the decision to invest in computers. Using British data, estimates are presented showing that computer use does not depend on age when taking into account wage costs and the tasks to be performed at work. It does turn out that older workers embody less computer skills than younger workers, but the main distinction lies between the 20-29 year old workers and the others. Investigating the value of computer skills reveals that these skills do not seem to yield labor-market returns and the relative lack of computer skills is unlikely to negatively affect the wages of older workers. Hence, the analysis does not find support for the concern about older workers not being able to cope with computers.