Changes in Human Capital and Wage Inequality in Mexico
AbstractOver the last two decades Mexico has witnessed a significant increase in wage inequality, typically attributed to the increase in relative demand for skilled labor. Over this period the educational achievements and their distribution across the labor force have also changed substantially. In this paper we analyze the impact of changes in human capital on wage inequality in Mexico. We focus our analysis on decomposing (1) the level of inequality in any given year and (2) change in inequality over time, into observable (e.g. age, education, occupation, etc.) and unobservable differences across workers. The main findings of this paper are: unobservable factors (within group inequality) account for most of the inequality in any given year. Among the observable factors human capital emerges as the most important variables in explaining the level of, and changes in, inequality.
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Bibliographic InfoPaper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2007001.
Length: 19 pages
Date of creation: Jan 2007
Date of revision: Jan 2007
Other versions of this item:
- Gurleen K. Popli, 2011. "Changes in Human Capital and Wage Inequality in Mexico," Oxford Development Studies, Taylor & Francis Journals, vol. 39(3), pages 369-387, February.
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- Claudia Tello & Raul Ramos & Manuel Artís, 2013.
"“Changes in Wage Structure in Mexico Going Beyond the Mean: An Analysis of Differences in Distribution, 1987-2008”,"
IREA Working Papers
201224, University of Barcelona, Research Institute of Applied Economics, revised Mar 2013.
- Claudia Tello & Raul Ramos & Manuel Artís, 2012. "“Changes in Wage Structure in Mexico Going Beyond the Mean: An Analysis of Differences in Distribution, 1987-2008”," AQR Working Papers 201211, University of Barcelona, Regional Quantitative Analysis Group, revised Mar 2013.
- Claudia Tello & Raul Ramos & Manuel Artís, 2012. "Changes in wage structure in Mexico going beyond the mean: An analysis of differences in distribution, 1987-2008," Working Papers XREAP2012-07, Xarxa de Referència en Economia Aplicada (XREAP), revised May 2012.
- Tello, Claudia & Ramos, Raul & Artís, Manuel, 2012. "Changes in Wage Structure in Mexico Going Beyond the Mean: An Analysis of Differences in Distribution, 1987-2008," IZA Discussion Papers 6576, Institute for the Study of Labor (IZA).
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