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Group Heterogeneity and the Gender Earnings Gap in Mexico

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  • José A. Pagán

    () (Department of Economics and Finance, The University of Texas-Pan American.)

  • Miren Ullibarri

    () (Department of Economics, Universidad Pública de Navarra.)

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    Abstract

    This study analyzes the role of group heterogeneity on the gender earnings gap in Mexico. Using individual level data from the Encuesta nacional de empleo urbano, an additively decomposable index of the extent of gender unexplained wage inequality is estimated. The Jenkins index is larger for those with lower levels of education, those with a college/ university degree, and those relatively older and with more labor market experience. The index is also inversely related to firm size and larger in the private and informal sectors. There is also some evidence of significant regional differences in unexplained gender wage inequality. The results are robust to alternative assumptions about employer discrimination aversion and suggest that group-specific public policy measures would be more effective than programs targeting women as a whole, if the goal is to reduce gender pay inequities as delineated in Mexico’s National Development Plan 1995-2000.

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    File URL: http://www.economiamexicana.cide.edu/num_anteriores/IX-1/02_JOSE_A_PAGAN_23-40.pdf
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    Bibliographic Info

    Article provided by in its journal Economia Mexicana NUEVA EPOCA.

    Volume (Year): IX (2000)
    Issue (Month): 1 (January-June)
    Pages: 23-40

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    Handle: RePEc:emc:ecomex:v:9:y:2000:i:1:p:23-40

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    1. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
    2. William J. Carrington & Kenneth R. Troske, 1995. "Gender Segregation in Small Firms," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 503-533.
    3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
    4. Pagan, Jose A & Sanchez, Susana M, 2000. "Gender Differences in Labor Market Decisions: Evidence from Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 619-37, April.
    5. Mellow, Wesley, 1982. "Employer Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 495-501, August.
    6. Jenkins, Stephen P., 1994. "Earnings discrimination measurement : A distributional approach," Journal of Econometrics, Elsevier, vol. 61(1), pages 81-102, March.
    7. Hanson, Gordon H, 1997. "Increasing Returns, Trade and the Regional Structure of Wages," Economic Journal, Royal Economic Society, vol. 107(440), pages 113-33, January.
    8. Cynthia J. Brown & Jose A. Pagan & Eduardo Rodrφguez Oreggia y Roman, 1999. "Occupational attainment and gender earnings differentials in Mexico," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(1), pages 123-135, October.
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    Cited by:
    1. Nopo, Hugo & Atal, Juan Pablo & Winder, Natalia, 2010. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," IZA Discussion Papers 5085, Institute for the Study of Labor (IZA).
    2. Cortez, Willy W., 2001. "What is Behind Increasing Wage Inequality in Mexico?," World Development, Elsevier, vol. 29(11), pages 1905-1922, November.

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