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Exploring the Urban-Rural Labor Income Gap in Uruguay: A Quantile Regression Decomposition

Author

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  • Marcelo Bergolo

    () (Center for Distributive Labor and Social Studies (CEDLAS), Universidad Nacional de La Plata, Argentina and the National Scientific and Technical Research Council (CONICET), Argentina.)

  • Fedora Carbajal

    () (Center for Distributive Labor and Social Studies (CEDLAS), Universidad Nacional de La Plata, Argentina and the National Scientific and Technical Research Council (CONICET), Argentina.)

Abstract

This paper analyzes the differences in real hourly labor income (RHLI) distributions between urban and rural workers for Uruguay in 2006. A quantile regression decomposition technique is applied in order to examine the urban-rural gap across the entire RHLI distribution. The urban-rural gap was primarily explained by the differences in the distribution of covariates along the entire distribution. Differences in distribution of returns favored the rural workers in most of the RHLI distribution although its contribution decreased across quantiles. The resulting gap in returns was most relevant for the worst off rural workers compared to the urban counterparts in both Montevideo and the rest of the urban centers.

Suggested Citation

  • Marcelo Bergolo & Fedora Carbajal, 2010. "Exploring the Urban-Rural Labor Income Gap in Uruguay: A Quantile Regression Decomposition," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, vol. 25(2), pages 133-168, Diciembre.
  • Handle: RePEc:ila:anaeco:v:25:y:2010:i:2:p:133-168
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    References listed on IDEAS

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    More about this item

    Keywords

    Urban-rural gap; labor income; quantile regression decomposition; Uruguay. JEL Classification: C15; J31; O18.;

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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