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“Changes in Wage Structure in Mexico Going Beyond the Mean: An Analysis of Differences in Distribution, 1987-2008”

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Author Info

  • Claudia Tello

    ()
    (Faculty of Economics, University of Barcelona)

  • Raul Ramos

    ()
    (Faculty of Economics, University of Barcelona)

  • Manuel Artís

    ()
    (Faculty of Economics, University of Barcelona)

Abstract

This paper conducts an empirical analysis of the relationship between wage inequality, employment structure, and returns to education in urban areas of Mexico during the past two decades (1987-2008). Applying Melly’s (2005) quantile regression based decomposition, we find that changes in wage inequality have been driven mainly by variations in educational wage premia. Additionally, we find that changes in employment structure, including occupation and firm size, have played a vital role. This evidence seems to suggest that the changes in wage inequality in urban Mexico cannot be interpreted in terms of a skill-biased change, but rather they are the result of an increasing demand for skills during that period.

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Bibliographic Info

Paper provided by University of Barcelona, Regional Quantitative Analysis Group in its series AQR Working Papers with number 201211.

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Length: 43 pages
Date of creation: Dec 2012
Date of revision: Mar 2013
Handle: RePEc:aqr:wpaper:201211

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Keywords: wage inequality; quantile regressions; decomposition. JEL classification: J31;

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References

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  1. Raymond Robertson, 2007. "Trade and Wages: Two Puzzles from Mexico," The World Economy, Wiley Blackwell, vol. 30(9), pages 1378-1398, 09.
  2. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Rising Wage Inequality: The Role of Composition and Prices," NBER Working Papers 11628, National Bureau of Economic Research, Inc.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Changes in wage structure in Mexico going beyond the mean: An analysis of differences in distribution, 1987-2008
    by Maximo Rossi in Wikiprogress América Latina on 2012-05-29 12:13:00

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