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

  • 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.)

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.

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Article provided by Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines in its journal Revista de Analisis Economico.

Volume (Year): 25 (2010)
Issue (Month): 2 (Diciembre)
Pages: 133-168

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Handle: RePEc:ila:anaeco:v:25:y:2010:i:2:p:133-168
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