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Inequality and Heterogeneous Returns to Education in Mexico (1992-2002)

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Author Info
Aashish Mehta (Asian Development Bank)
Hector J. Villarreal () (ITESM Campus Monterrey, EGAP / Mexico)

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Abstract

Within the attempts to understand Mexican economic inequality, returns to education have received a great deal of attention. The driving question has been: why are Mexican wages so unequal? This paper argues that not only the distribution of human capital matters, but also sociodemographic variables, which have their own dynamics and complex interactions with the former. A three-equation maximum likelihood specification in which employment, hours worked and log-wages, as well as their joint variance matrix is proposed, generalizing the Mincerian specification. The resulting is a complex story, where income profiles depend upon particular characteristics.

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Publisher Info
Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 131.

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Length: 18 pages
Date of creation: 18 Nov 2005
Date of revision:
Handle: RePEc:got:iaidps:131

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Find related papers by JEL classification:
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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  1. Jaeger, David A & Page, Marianne E, 1996. "Degrees Matter: New Evidence on Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 733-40, November. [Downloadable!] (restricted)
  2. César Patricio Bouillon & Arianna Legovini & Nora Lustig, 2003. "Rising Inequality in Mexico: Household Characteristics and Regional Effects," The Journal of Development Studies, Taylor and Francis Journals, vol. 39(4), pages 112-133, April. [Downloadable!] (restricted)
  3. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
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  4. Smith, Paula A. & Metzger, Michael R., 1998. "The return to education: Street vendors in Mexico," World Development, Elsevier, vol. 26(2), pages 289-296, February. [Downloadable!] (restricted)
  5. James Banks & Richard Blundell & Arthur Lewbel, 1994. "Tax reform and welfare measurement: do we need demand system estimation?," IFS Working Papers W94/11, Institute for Fiscal Studies.
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  6. Esquivel, Gerardo & Rodriguez-Lopez, Jose Antonio, 2003. "Technology, trade, and wage inequality in Mexico before and after NAFTA," Journal of Development Economics, Elsevier, vol. 72(2), pages 543-565, December. [Downloadable!] (restricted)
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