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Wage inequality in a developing country: decrease in minimum wage or increase in education returns

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Author Info
Xulia GonzÂlez () (Departamento de Economi´a Aplicada, Fac. EconÕmicas, Universidad de Vigo. Lagoas Marcosende sn, Pontevedra, Spain.)
Daniel Miles () (Departamento de Economi´a Aplicada, Fac. EconÕmicas, Universidad de Vigo. Lagoas Marcosende sn, Pontevedra, Spain.)

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Abstract

In this paper we analyze the increase in wage inequality observed in the Uruguayan labour market during the last decade, by studying how the changes in minimum wage and returns to education affected the wage structure. Although in most developed countries a significant proportion of the increase in wage inequality is explained by a fall in the real minimum wage, this is not the case for the Uruguayan labour market. We observe that returns to education increased significantly, which could explain the increase of wage dispersion by its effects on the upper tail of the wage distribution. To derive these conclusions we follow a parametric and nonparametric quantile regression approach.

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Publisher Info
Article provided by Springer in its journal Empirical Economics.

Volume (Year): 26 (2001)
Issue (Month): 1 ()
Pages: 135-148
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Handle: RePEc:spr:empeco:v:26:y:2001:i:1:p:135-148

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  1. Giovagnoli, Paula Ines & Fiszbein, Ariel & Patrinos, Harry Anthony, 2005. "Estimating the returns to education in Argentina : 1992-2002," Policy Research Working Paper Series 3715, The World Bank. [Downloadable!]
  2. Arulampalam, Wiji & Booth, Alison L & Bryan, Mark L, 2004. "Are There Asymmetries in the Effects of Training on the Conditional Male Wage Distribution?," CEPR Discussion Papers 4289, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Lawrence Dacuycuy, 2006. "Explaining male wage inequality in the Philippines: non-parametric and semiparametric approaches," Applied Economics, Taylor and Francis Journals, vol. 38(21), pages 2497-2511, December. [Downloadable!] (restricted)
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