An analysis of on-the-job computer use shows that such use is more common in metro areas than in nonmetro areas. A substantial wage premium, on the order of 10 percent to 12 percent, is associated with use of a computer on the job, even after other job and worker characteristics are taken into account. However, this wage premium accounts for only a small proportion of the wage differences between metro and nonmetro areas. Further analysis shows that the computer use wage premium is about 5 percent in nonmetro areas, and is also lower among workers with less education and/or in lower-status occupations. This finding suggests only a small role for computer literacy skills in enhancing the earnings of low-wage workers in rural areas