ARE COMPUTERS AT HOME A FORM OF CONSUMPTION OR AN INVESTMENT? A LONGITUDINAL ANALYSIS FOR JAPAN* By DAIJI KAWAGUCHI

This study examines the effect on labour market outcomes, of computer possession at home using longitudinal data collected in Japan. There are positive correlations between computer possession and women’s full-time employment and the salaries of both men and women. In a fixed effects analysis, however, no temporal, causal effects of computer possession on labour market outcomes were found. Overall, the results suggest that the positive correlation between computer possession and better labour market outcomes does not imply causality among workers strongly attached to the labour market. JEL Classification Code: J31 1