Advanced Search
MyIDEAS: Login to save this paper or follow this series

Educational upgrading and returns to skills in Latin America : evidence from a supply-demand framework, 1990-2010

Contents:

Author Info

  • Gasparini, Leonardo
  • Galiani, Sebastian
  • Cruces, Guillermo
  • Acosta, Pablo

Abstract

It has been argued that a factor behind the decline in income inequality in Latin America in the 2000s was the educational upgrading of its labor force. Between 1990 and 2010, the proportion of the labor force in the region with at least secondary education increased from 40 to 60 percent. Concurrently, returns to secondary education completion fell throughout the past two decades, while the 2000s saw a reversal in the increase in the returns to tertiary education experienced in the 1990s. This paper studies the evolution of wage differentials and the trends in the supply of workers by educational level for 16 Latin American countries between 1990 and 2000. The analysis estimates the relative contribution of supply and demand factors behind recent trends in skill premia for tertiary and secondary educated workers. Supply-side factors seem to have limited explanatory power relative to demand-side factors, and are only relevant to explain part of the fall in wage premia for high-school graduates. Although there is significant heterogeneity in individual country experiences, on average the trend reversal in labor demand in the 2000s can be partially attributed to the recent boom in commodity prices that could favor the unskilled (non-tertiary educated) workforce, although employment patterns by sector suggest that other within-sector forces are also at play, such as technological diffusion or skill mismatches that may reduce the labor productivity of highly-educated workers.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2012/01/03/000158349_20120103093606/Rendered/PDF/WPS5921.pdf
Download Restriction: no

Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5921.

as in new window
Length:
Date of creation: 01 Dec 2011
Date of revision:
Handle: RePEc:wbk:wbrwps:5921

Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

Related research

Keywords: Labor Markets; Labor Policies; Economic Theory&Research; Inequality; Tertiary Education;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Atolia, Manoj, 2007. "Trade liberalization and rising wage inequality in Latin America: Reconciliation with HOS theory," Journal of International Economics, Elsevier, Elsevier, vol. 71(2), pages 467-494, April.
  2. Guillermo Cruces & Leonardo Gasparini, 2008. "A Distribution in Motion: The Case of Argentina," CEDLAS, Working Papers, CEDLAS, Universidad Nacional de La Plata 0078, CEDLAS, Universidad Nacional de La Plata.
  3. Sebastian Galiani & Pablo Sanguinetti, 2003. "The Impact of Trade Liberalization on Wage Inequality: Evidence from Argentina," Working Papers, Universidad de San Andres, Departamento de Economia 65, Universidad de San Andres, Departamento de Economia, revised Oct 2003.
  4. Attanasio, Orazio & Goldberg, Pinelopi & Pavcnik, Nina, 2003. "Trade Reforms and Wage Inequality in Colombia," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4023, C.E.P.R. Discussion Papers.
  5. Robert J. Barro & Jong-Wha Lee, 2010. "A New Data Set of Educational Attainment in the World, 1950–2010," NBER Working Papers 15902, National Bureau of Economic Research, Inc.
  6. Guillermo Cruces & Carolina García Domench & Leonardo Gasparini, 2012. "Inequality in Education: Evidence for Latin America," CEDLAS, Working Papers, CEDLAS, Universidad Nacional de La Plata 0135, CEDLAS, Universidad Nacional de La Plata.
  7. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, Elsevier, Elsevier.
  8. Harrison, Ann & Hanson, Gordon, 1999. "Who gains from trade reform? Some remaining puzzles," Journal of Development Economics, Elsevier, Elsevier, vol. 59(1), pages 125-154, June.
  9. Brambilla, Irene & Carneiro, Rafael Dix & Lederman, Daniel & Porto, Guido, 2010. "Skills, exports, and the wages of five million Latin American workers," Policy Research Working Paper Series 5246, The World Bank.
  10. Gindling, T.H. & Terrell, Katherine, 2005. "The effect of minimum wages on actual wages in formal and informal sectors in Costa Rica," World Development, Elsevier, Elsevier, vol. 33(11), pages 1905-1921, November.
  11. Gabriel Montes Rojas, 2006. "Skill premia in Mexico: demand and supply factors," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(14), pages 917-924.
  12. Ferreira, Francisco H.G. & Leite, Phillippe G. & Wai-Poi, Matthew, 2007. "Trade Liberalization, Employment Flows and Wage Inequality in Brazil," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  13. Leonardo Gasparini & Guillero Cruces & Leopoldo Tornarolli, 2011. "Recent Trends In Income Inequality In Latin America," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  14. Pablo Acosta & Leonardo Gasparini, 2007. "Capital Accumulation, Trade Liberalization, and Rising Wage Inequality: The Case of Argentina," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 793-812.
  15. Leonardo Gasparini & Nora Lustig, 2011. "The rise and fall of income inequality in Latin America," Working Papers 213, ECINEQ, Society for the Study of Economic Inequality.
  16. Claudia Goldin & Lawrence F. Katz, 2007. "The Race between Education and Technology: The Evolution of U.S. Educational Wage Differentials, 1890 to 2005," NBER Working Papers 12984, National Bureau of Economic Research, Inc.
  17. Marco Manacorda & Carolina Sanchez-Paramo & Norbert Schady, 2005. "Changes in returns to education in Latin America: the role of demand and supply of skills," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 19874, London School of Economics and Political Science, LSE Library.
  18. Joanne Lindley & Stephen Machin, 2011. "Rising Wage Inequality and Postgraduate Education," CEP Discussion Papers dp1075, Centre for Economic Performance, LSE.
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Educational Upgrading and Returns to Skills in Latin America. Evidence from a Supply-Demand Framework, 1990-2010
    by Maximo Rossi in Wikiprogress América Latina on 2012-03-18 13:17:00
  2. Educational Upgrading and Returns to Skills in Latin America: Evidence from a Supply-Demand Framework, 1990-2010
    by maximorossi in NEP-LTV blog on 2012-01-20 15:12:23
  3. Educational Upgrading and Returns to Skills in Latin America: Evidence from a Supply-Demand Framework, 1990-2010
    by Maximo Rossi in Wikiprogress América Latina on 2012-01-20 15:14:00
  4. Educational Upgrading and Returns to Skills in Latin America: Evidence from a Supply-Demand Framework, 1990-2010
    by maximorossi in NEP-LTV blog on 2012-01-20 15:12:23
  5. Educational upgrading and returns to skills in Latin America : evidence from a supply-demand framework, 1990-2010
    by Maximo Rossi in Wikiprogress América Latina on 2012-01-05 20:12:00
  6. Educational upgrading and returns to skills in Latin America : evidence from a supply-demand framework, 1990-2010
    by max.rossi in Wikiprogress América Latina on 2012-01-05 20:12:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Nora Lustig & Luis F. Lopez-Calva & Eduardo Ortiz-Juarez, 2012. "Declining Inequality in Latin America in the 2000s: the Cases of Argentina, Brazil, and Mexico," Working Papers 266, ECINEQ, Society for the Study of Economic Inequality.
  2. Azevedo, Joao Pedro & Davalos, Maria Eugenia & Diaz-Bonilla, Carolina & Atuesta, Bernardo & Castaneda, Raul Andres, 2013. "Fifteen years of inequality in Latin America : how have labor markets helped ?," Policy Research Working Paper Series 6384, The World Bank.
  3. Raymundo Campos & Gerado Esquivel & Nora Lustig, 2012. "The Rise and Fall of Income Inequality in Mexico, 1989-2010," Working Papers, Tulane University, Department of Economics 1201, Tulane University, Department of Economics.
  4. Binelli, Chiara, 2014. "How the wage-education profile got more convex: evidence from Mexico," Discussion Paper Series In Economics And Econometrics 1404, Economics Division, School of Social Sciences, University of Southampton.
  5. Guillermo Cruces & Carolina García Domench & Leonardo Gasparini, 2012. "Inequality in Education: Evidence for Latin America," CEDLAS, Working Papers, CEDLAS, Universidad Nacional de La Plata 0135, CEDLAS, Universidad Nacional de La Plata.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:5921. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.