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“Changes in Wage Structure in Mexico Going Beyond the Mean: An Analysis of Differences in Distribution, 1987-2008”

Author

Listed:
  • Claudia Tello

    (Faculty of Economics, University of Barcelona)

  • Raul Ramos

    (Faculty of Economics, University of Barcelona)

  • Manuel Artís

    (Faculty of Economics, University of Barcelona)

Abstract

This paper conducts an empirical analysis of the relationship between wage inequality, employment structure, and returns to education in urban areas of Mexico during the past two decades (1987-2008). Applying Melly’s (2005) quantile regression based decomposition, we find that changes in wage inequality have been driven mainly by variations in educational wage premia. Additionally, we find that changes in employment structure, including occupation and firm size, have played a vital role. This evidence seems to suggest that the changes in wage inequality in urban Mexico cannot be interpreted in terms of a skill-biased change, but rather they are the result of an increasing demand for skills during that period.

Suggested Citation

  • Claudia Tello & Raul Ramos & Manuel Artís, 2012. "“Changes in Wage Structure in Mexico Going Beyond the Mean: An Analysis of Differences in Distribution, 1987-2008”," AQR Working Papers 201211, University of Barcelona, Regional Quantitative Analysis Group, revised Mar 2013.
    • Handle: RePEc:aqr:wpaper:201211
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    File URL: http://www.ub.edu/irea/working_papers/2012/201224.pdf
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    More about this item

    Keywords

    wage inequality; quantile regressions; decomposition. JEL classification: J31;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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