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Wages differentials in Ecuador: A regional approach with sample selection of Heckman and Oaxaca-Blinder decomposition

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  • Alvarado, Rafael
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    Abstract

    This paper estimates and decomposes wage differentials in Ecuador. Is corrected by self-selection bias with the two-step methodology proposed by Heckman (1979) and Oaxaca-Blinder decomposition (1973) is checked whether the differences found are due to the initial endowment of human capital or potential discrimination. On the other hand, examines the influence of geography and ethnicity in the level of wages. The data used are from the Survey of Income and Expenses of the National Institute of Statistics and Censuses (INEC, 2009). Through decomposition is verified that the gender wage gap for men, job security for those with contract labor and marital status for married people are due to unobserved factors. While the ethnic wage gap by geographical area, natural areas and by economic sector are due to differences in the initial endowment of human capital.

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37470.

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    Date of creation: 19 Mar 2012
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    Handle: RePEc:pra:mprapa:37470

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    Keywords: Wages differentials. Returns to human capital;

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    1. Lam. D. & Schoeni, R.F., 1996. "Effects on Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Papers, RAND - Reprint Series 96-13, RAND - Reprint Series.
    2. Chiswick, Barry R., 2003. "Jacob Mincer, Experience and the Distribution of Earnings," IZA Discussion Papers 847, Institute for the Study of Labor (IZA).
    3. Takashi Kurosaki & Humayun Khan, 2006. "Human Capital, Productivity, and Stratification in Rural Pakistan," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 10(1), pages 116-134, 02.
    4. Alaniz, Enrique & Gindling, T. H. & Terrell, Katherine, 2011. "The Impact of Minimum Wages on Wages, Work and Poverty in Nicaragua," IZA Discussion Papers 5702, Institute for the Study of Labor (IZA).
    5. Picchio, M. & Mussida, C., 2010. "Gender Wage Gap: A Semi-Parametric Approach With Sample Selection Correction," Discussion Paper, Tilburg University, Center for Economic Research 2010-16, Tilburg University, Center for Economic Research.
    6. Heckman, James & Layne-Farrar, Anne & Todd, Petra, 1996. "Human Capital Pricing Equations with an Application to Estimating the Effect of Schooling Quality on Earnings," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 562-610, November.
    7. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    8. Dante Contreras & Emerson Melo & Susana Ojeda, 2005. "¿Estimando el retorno a la educación o a los no observables?: evidencia de datos de panel," Estudios de Economia, University of Chile, Department of Economics, University of Chile, Department of Economics, vol. 32(2 Year 20), pages 187-199, December.
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