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Wage Inequality on the Rise: The Role of Workers’ Characteristics

Author

Listed:
  • Guillermo Alves

    (Brown University)

  • Matías Brum

    (Queen Mary, University of London)

  • Mijail Yapor

    (Universidad de la República)

Abstract

In recent decades, wage inequality has been an important factor behind the rise in income inequality around the world. The leading explanation for increased wage inequality has been the increasing returns to human capital, usually attributed to changing technology and globalization. This article studies the rise in wage inequality in Uruguay, a small open developing economy. In contrast with popular explanations, our results highlight a strong and gradual inequalizing effect of changes in workers’ characteristics, such as increased schooling and age, decline of public sector employment and contraction of employment in manufacturing together with increased employment in services.

Suggested Citation

  • Guillermo Alves & Matías Brum & Mijail Yapor, 2013. "Wage Inequality on the Rise: The Role of Workers’ Characteristics," Journal of Income Distribution, Ad libros publications inc., vol. 22(2), pages 99-123, June.
    • Handle: RePEc:jid:journl:y:2013:v:22:i:2:p:99-123
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    File URL: http://jid.journals.yorku.ca/index.php/jid/article/view/40320
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    Cited by:

    1. Gonzalo Edwards & Raimundo Soto & Felipe Zurita, 2020. "Life Expectancy and Income Levels in Chile," Documentos de Trabajo 544, Instituto de Economia. Pontificia Universidad Católica de Chile..

    More about this item

    Keywords

    wage inequality; quantile regressions; inequality decomposition; Uruguay;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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