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Explaining Wage Inequality in Chile: Does Education Really Matter?

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  • Dante Contreras

Abstract

This paper decomposes wage inequality in Chile over the period 1958-1996. The evidence shows that education accounts for more than 38% of wage inequality. In addition, the return to education explains close to 80% of education's contribution. Finally, a higher convex pattern is observed in the returns to schooling over time. Thus, the importance of university education in the contribution of schooling to inequality has been increasing in the last decades. Therefore, policies aimed at providing access to higher education to poor individuals are not only expected to generate higher earnings, but also lower levels of inequality.

Suggested Citation

  • Dante Contreras, 2002. "Explaining Wage Inequality in Chile: Does Education Really Matter?," Journal of Income Distribution, Ad libros publications inc., vol. 11(1-2), pages 3-3, June.
    • Handle: RePEc:jid:journl:y:2002:v:11:i:1-2:p:3-3
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    File URL: http://jid.journals.yorku.ca/index.php/jid/article/view/1244
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    Cited by:

    1. Gallego, Francisco A., 2012. "Skill Premium in Chile: Studying Skill Upgrading in the South," World Development, Elsevier, vol. 40(3), pages 594-609.
    2. Claudia Sanhueza & Rodrigo Bravo & Oscar Giusti, 2008. "La Belleza y su Efecto en el Mercado Laboral: Evidencia para Chile," ILADES-UAH Working Papers inv204, Universidad Alberto Hurtado/School of Economics and Business.
    3. Florencia Torche & Seymour Spilerman, 2006. "Parental Wealth Effects on Living Standards and Asset Holdings: Results from Chile," Chapters, in: Edward N. Wolff (ed.), International Perspectives on Household Wealth, chapter 10, Edward Elgar Publishing.
    4. Tejada, Mauricio M., 2016. "Lifetime inequality measures for an emerging economy: The case of Chile," Labour Economics, Elsevier, vol. 42(C), pages 1-15.
    5. Contreras, Dante & Gallegos, Sebastián, 2007. "Descomponiendo la desigualdad salarial en América Latina: ¿una década de cambios?," Estudios Estadísticos 4761, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Francisco Gallego, 2006. "Skill Premium in Chile: Studying the Skill Bias Technical Change Hypothesis in the South," Working Papers Central Bank of Chile 363, Central Bank of Chile.
    7. Contreras, Dante & Elacqua, Gregory & Martinez, Matías & Miranda, Álvaro, 2016. "Bullying, identity and school performance: Evidence from Chile," International Journal of Educational Development, Elsevier, vol. 51(C), pages 147-162.

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