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Decline in values of degrees and recent evolution of wage inequality: Evidence from Chile

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  • Yoshimichi Murakami
  • Tomokazu Nomura

Abstract

Using data from nationally and regionally representative household surveys, we analyze the association between the changes in coefficients of dummy varia-bles for higher education degrees in the wage equation and evolution of wage inequality in Chile from 2013-2017. Employing a decomposition method using unconditional quantile regressions, we find that a significant decline in the coe-fficients of professional degrees, especially from new private universities, with a larger magnitude at upper quantiles, is associated with a substantial reduction in wage inequality. The results are robust to the correction for sample selection bias and control for workers’ occupation and firm size categories.

Suggested Citation

  • Yoshimichi Murakami & Tomokazu Nomura, 2023. "Decline in values of degrees and recent evolution of wage inequality: Evidence from Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 50(1 Year 20), pages 55-132, June.
    • Handle: RePEc:udc:esteco:v:50:y:2023:i:1:p:55-132
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    More about this item

    Keywords

    Higher education; wage inequality.;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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