The Determinants of Information Technology Wages

Abstract

Anchoring this work to the classical human capital theory, the authors examine the effects of various human capital factors on IT professional compensation. Dividing IT salary into LOW (<$75,000) and HIGH (>=$75,000) ranges and using binomial logistic regression analysis, this paper estimates the effects of IT experience, education, IT degrees, IT certifications, and managerial positions on the probabilities of earning low wages in comparison to high wages, while controlling for industry type, organization size and location, gender, and marital status. Results indicate that the most important factors associated with high salaries are managerial positions, IT experience, education, and organization size. Practical advice is given on how IT professionals can employ these results to increase their compensation.