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Technology, routinization and wage inequality: gender differences in the case of Uruguay

Author

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  • López Sandra Rodríguez
  • Sanroman Graciela

    (Universidad de la República, Department of Economics)

Abstract

Technology has changed the way we work, creating and destroying employment but especially modifying the occupational tasks we perform. This paper seeks to analyze the contribution of technology to changes in the distribution of wages in Uruguay and its differences between genders. We address this question from the task-based approach perspective. We use the recentered influence function regression decomposition method to analyze men and women wages and the gender wage gap over the period 2005–2015. Our estimates suggest that introducing occupational tasks linked to technology into the analysis contributes to explain changes in the wage distribution as well as in the gender wage gap. Contrary to the routinization hypothesis predictions we find that technology has an overall equalizing effect but, it pushes up the gender wage gap among private employees except at the very top of the wage distribution.

Suggested Citation

  • López Sandra Rodríguez & Sanroman Graciela, 2023. "Technology, routinization and wage inequality: gender differences in the case of Uruguay," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 14(1), pages 1-54, January.
    • Handle: RePEc:vrs:izajdm:v:14:y:2023:i:1:p:54:n:8
    DOI: 10.2478/izajodm-2023-0008
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    More about this item

    Keywords

    Occupational Tasks; RIF-Regressions; Technology; Wage Inequality; Gender Wage Gap; J3; J5; J16; J31;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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