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Forecasting wage inequality

  • Jaime Ruiz-Tagle

    ()

Wage inequality in Chile has remained high for decades and it is currently at the center of the political agenda. Increasing education of workers is expected to contribute to reduce wage inequality. Based on historical trends of age, education, and returns to education, this paper attempts to forecast wage inequality. Despite an increase in average earnings due to higher levels of education of workers, high levels of wage inequality within age groups and within education groups produce that forecasted wage inequality remains high for the next 10- year period. The structure of the Chilean labor market appears to imply that there is a high level of underlying wage inequality. Nevertheless, the good news are that the labor market structure seems to prevent further deteriorations of wage inequality.

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File URL: http://www.econ.uchile.cl/uploads/publicacion/c71266be-d189-4a27-916d-3c2e09bdbc37.pdf
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Article provided by University of Chile, Department of Economics in its journal Estudios de Economia.

Volume (Year): 34 (2007)
Issue (Month): 2 Year 2007 (December)
Pages: 141-162

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Handle: RePEc:udc:esteco:v:34:y:2007:i:2:p:141-162
Contact details of provider: Web page: http://www.econ.uchile.cl/

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  1. Rómulo A.Chumacero & Ricardo D.Paredes, 2005. "Characterizing income distribution for poverty and inequality analysis," Estudios de Economia, University of Chile, Department of Economics, vol. 32(1 Year 20), pages 97-117, June.
  2. Claudio Sapelli, 2011. "A cohort analysis of the income distribution in Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 38(1 Year 20), pages 223-242, June.
  3. Contreras, Dante & Cooper, Ryan & Neilson, Christopher, 2008. "Crecimiento pro pobre en Chile," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(300), pages 931-944, octubre-d.
  4. Jere R. Behrman, 2011. "How much might human capital policies affect earnings inequalities and poverty?," Estudios de Economia, University of Chile, Department of Economics, vol. 38(1 Year 20), pages 8-41, June.
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