Abstract
As corporations in the United States have intensified their recourse to IT over the past decade, demand for workers with IT skills has grown. Using data for 1995-97 regarding numbers of workers and IT-skilled workers employed by the top 500 corporations making intensive use of IT in the United States, as well as company disclosure reports, the author seeks to identify the effect on companies' output of investment in IT skills, using a Cobb-Douglas production function. He concludes that changes in firms' IT capabilities indeed increased demand for IT-skilled labour and improved productivity.