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Descomponiendo la Desigualdad Salarial en la República Dominicana: Análisis Empírico para el Periodo 2000-2011
[Decomposing Wage Inequality in the Dominican Republic: Empirical Analysis for the Period 2000-2011]

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  • Ramirez, Francisco A.

Abstract

In this paper I analyze the dynamics of wage inequality in the Dominican Republic for the period 2000-2011. The analysis focuses on the evolution of wage inequality and the causal factors behind this phenomena. Using quantile regressions and data from the National Survey of Labour Force, several findings can be enumerated. First, a significant decline in real hourly wage is observed during the period 2000-2011 due to the macroeconomic effects of the banking crisis of 2003. Second, a reduction in overall inequality is verified, induced by a contraction of wages at the top end of the distribution, greater than that experienced in the lower percentiles. Finally, the decomposition in inequality between groups and within groups, suggests that over 70 percent of the total wage dispersion is explained by the latter. However, most of the fall in inequality is due the reduction of inequality between groups, guided by a reduction in the returns to education in the higher percentiles and a reduction in the wage gap between women and men in the lower end of the distribution .

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 51993.

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Date of creation: 2012
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Handle: RePEc:pra:mprapa:51993

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Keywords: Wage inequality; quantile regression; Dominican Republic;

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  1. Christian Manuel Posso Suárez, . "Desigualdad salarial en Colombia 1984-2005: cambios en la composición del mercado laboral y retornos a la educación post-secundaria," Borradores de Economia 529, Banco de la Republica de Colombia.
  2. Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: a Semiparametric Approach," Cahiers de recherche, Universite de Montreal, Departement de sciences economiques 9406, Universite de Montreal, Departement de sciences economiques.
  3. Dante Contreras Guajardo & Sebastián Gallegos, 2007. "Descomponiendo la Desigualdad Salarial en América Latina: Una Década de Cambios," Working Papers, University of Chile, Department of Economics wp262, University of Chile, Department of Economics.
  4. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, American Economic Association, vol. 82(3), pages 371-92, June.
  5. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  6. Lawrence F. Katz & Kevin M. Murphy, 1991. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," NBER Working Papers 3927, National Bureau of Economic Research, Inc.
  7. David Card & Thomas Lemieux, 2001. "Can Falling Supply Explain The Rising Return To College For Younger Men? A Cohort-Based Analysis," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(2), pages 705-746, May.
  8. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, October.
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