IDEAS home Printed from https://ideas.repec.org/p/idb/brikps/3793.html
   My bibliography  Save this paper

Returns to Education, Sector Premiums, and Male Wage Inequality in Mexico

Author

Listed:
  • Bouillon, César P.

Abstract

This paper examines Mexico's increase in wage inequality using data from household surveys (Encuesta Nacional de Ingreso Gasto de los Hogares de México) produced by the Mexican Institute for Statistics, Geography and Informatics (Instituto Nacional de Estadística, Geografía e Informática). An econometric simulation technique based on Juhn, Murphy, and Pierce (1993) and developed for the household level by Bourguignon, Fournier, and Gurgand (1998) is used to measure the contribution of changes in skill premiums and sector returns to the increase in inequality in Mexican males' wages during the period of analysis. The household surveys used in this paper make it possible to decompose some of the changes in inequality in Mexico after trade reform in the mid-1980s. The regressions and simulation technique confirm that male Mexican wage earners experienced an important increase in skill premiums and a decrease in sector wage premiums after the trade reform. The increase in skill premiums was unequalizing, while the decrease in sector premiums was equalizing.

Suggested Citation

  • Bouillon, César P., 2000. "Returns to Education, Sector Premiums, and Male Wage Inequality in Mexico," IDB Publications (Working Papers) 3793, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:3793
    as

    Download full text from publisher

    File URL: https://publications.iadb.org/publications/english/document/Returns-to-Education-Sector-Premiums-and-Male-Wage-Inequality-in-Mexico.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eduardo Lora & Gustavo Márquez, 1998. "The Employment Problem in Latin America: Perceptions and Stylized Facts," Research Department Publications 4114, Inter-American Development Bank, Research Department.
    2. Borjas, George J. & Freeman, Richard B. (ed.), 1992. "Immigration and the Work Force," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226066332, August.
    3. Eduardo Lora & Gustavo Márquez, 1998. "The Employment Problem in Latin America: Perceptions and Stylized Facts," Research Department Publications 4114, Inter-American Development Bank, Research Department.
    4. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
    5. Lora, Eduardo & Olivera, Mauricio, 1998. "Macro Policy and Employment Problems in Latin America," IDB Publications (Working Papers) 6077, Inter-American Development Bank.
    6. Robbins, Donald J., 1996. "Hos Hits Facts: Facts Win Evidence On Trade And Wages In The Developing World," Harvard Institute for International Development (HIID) Papers 294374, Harvard University, Kennedy School of Government.
    7. Gordon H. Hanson & Ann Harrison, 2022. "Trade Liberalization And Wage Inequality In Mexico," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 3, pages 43-60, World Scientific Publishing Co. Pte. Ltd..
    8. repec:idb:wpaper:371 is not listed on IDEAS
    9. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    10. George J. Borjas & Richard B. Freeman, 1992. "Immigration and the Work Force: Economic Consequences for the United States and Source Areas," NBER Books, National Bureau of Economic Research, Inc, number borj92-1.
    11. Pissarides, Christopher A, 1997. "Learning by Trading and the Returns to Human Capital in Developing Countries," The World Bank Economic Review, World Bank, vol. 11(1), pages 17-32, January.
    12. Cragg, Michael Ian & Epelbaum, Mario, 1996. "Why has wage dispersion grown in Mexico? Is it the incidence of reforms or the growing demand for skills?," Journal of Development Economics, Elsevier, vol. 51(1), pages 99-116, October.
    13. Tan, Hong & Batra, Geeta, 1997. "Technology and Firm Size-Wage Differentials in Colombia, Mexico, and Taiwan (China)," The World Bank Economic Review, World Bank, vol. 11(1), pages 59-83, January.
    14. Bouillon, César P., 2000. "Inequality and Mexico's Labor Market after Trade Reform," IDB Publications (Working Papers) 3782, Inter-American Development Bank.
    15. Ros, Jaime, 1993. "La reforma del régimen comercial en México durante los años ochenta: sus efectos económicos y dimensiones políticas," Series Históricas 9390, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    16. César P. Bouillon, 2000. "Inequality and Mexico's Labor Market after Trade Reform," IDB Publications (Working Papers) 53718, Inter-American Development Bank.
    17. Eduardo Lora & Mauricio Olivera, 1998. "Macro Policy and Employment Problems in Latin America," Research Department Publications 4116, Inter-American Development Bank, Research Department.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Raymundo M. Campos-Vázquez & Nora Lustig, 2017. "Labour income inequality in Mexico: Puzzles solved and unsolved," WIDER Working Paper Series wp-2017-186, World Institute for Development Economic Research (UNU-WIDER).
    2. Raymundo M. Campos-Vázquez & Nora Lustig & John Scott, 2018. "Inequality in Mexico: Labour markets and fiscal redistribution 1989-2014," WIDER Working Paper Series wp-2018-188, World Institute for Development Economic Research (UNU-WIDER).
    3. Raymundo Campos-Vázquez & Nora Lustig & John Scott, 2018. "Inequality in Mexico: Labour markets and fiscal redistribution 1989–2014," WIDER Working Paper Series 188, World Institute for Development Economic Research (UNU-WIDER).
    4. Bouillon, César P., 2000. "Inequality and Mexico's Labor Market after Trade Reform," IDB Publications (Working Papers) 3782, Inter-American Development Bank.
    5. Raymundo M. Campos-Vazquez & Nora Lustig, 2017. "Labour income inequality in Mexico: Puzzles solved and unsolved," Working Papers 1719, Tulane University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bouillon, César P., 2000. "Inequality and Mexico's Labor Market after Trade Reform," IDB Publications (Working Papers) 3782, Inter-American Development Bank.
    2. César P. Bouillon, 2000. "Inequality and Mexico's Labor Market after Trade Reform," IDB Publications (Working Papers) 53718, Inter-American Development Bank.
    3. César P. Bouillon, 2000. "Returns to Education, Sector Premiums, and Male Wage Inequality in Mexico," IDB Publications (Working Papers) 51038, Inter-American Development Bank.
    4. Jorge Saba Arbache, 2001. "Trade Liberalisation and Labor Markets in Developing Countries: Theory and Evidence," Studies in Economics 0112, School of Economics, University of Kent.
    5. Raymundo M. Campos-Vazquez & Nora Lustig, 2017. "Labour income inequality in Mexico: Puzzles solved and unsolved," Working Papers 1719, Tulane University, Department of Economics.
    6. Lora, Eduardo & Olivera, Mauricio, 1998. "Macro Policy and Employment Problems in Latin America," IDB Publications (Working Papers) 6077, Inter-American Development Bank.
    7. Raymundo M. Campos-Vazquez & Nora Lustig, 2017. "Labour income inequality in Mexico: Puzzles solved and unsolved," Working Papers 1719, Tulane University, Department of Economics.
    8. Zouhair Mrabet, 2012. "The Impact of Trade Liberalization on Labor Market of Developing Countries: What can Literature tell us?," Journal of Economics and Behavioral Studies, AMH International, vol. 4(6), pages 307-318.
    9. Raymundo Campos-Vázquez & Nora Lustig & John Scott, 2018. "Inequality in Mexico: Labour markets and fiscal redistribution 1989–2014," WIDER Working Paper Series 188, World Institute for Development Economic Research (UNU-WIDER).
    10. Raymundo M. Campos-Vázquez & Nora Lustig & John Scott, 2018. "Inequality in Mexico: Labour markets and fiscal redistribution 1989-2014," WIDER Working Paper Series wp-2018-188, World Institute for Development Economic Research (UNU-WIDER).
    11. Robbins, Donald J., 2003. "The impact of trade liberalization upon inequality in developing countries : a review of theory and evidence," ILO Working Papers 993650553402676, International Labour Organization.
    12. Pierre‐Richard Agénor, 2004. "Macroeconomic Adjustment and the Poor: Analytical Issues and Cross‐Country Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 18(3), pages 351-408, July.
    13. Nathalie Chusseau & Joël Hellier, 2012. "Globalisation and Inequality: Where do we stand?," Journal of Income Distribution, Ad libros publications inc., vol. 21(3-4), pages 7-34, November.
    14. Julien Gourdon, 2011. "Wage inequality in developing countries: South–South trade matters," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(4), pages 359-383, December.
    15. Gustavo Márquez, 2000. "Labor Markets and Income Support: What Did We Learn from the Crises?," Research Department Publications 4219, Inter-American Development Bank, Research Department.
    16. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo.
    17. Gurleen K. Popli, 2007. "Rising Wage Inequality in Mexico, 1984-2000: A Distributional Analysis," Journal of Income Distribution, Ad libros publications inc., vol. 16(2), pages 49-67, June.
    18. Gurleen K. Popli, 2011. "Changes in Human Capital and Wage Inequality in Mexico," Oxford Development Studies, Taylor & Francis Journals, vol. 39(3), pages 369-387, February.
    19. Arjun S. Bedi & Andrzej Cielik, 2002. "Wages and wage growth in Poland: The role of foreign direct investment," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 10(1), pages 1-27.
    20. Jim Airola & Chinhui Juhn, 2008. "Wage Inequality in Post-Reform Mexico," Journal of Income Distribution, Ad libros publications inc., vol. 17(1), pages 110-134, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:brikps:3793. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Felipe Herrera Library (email available below). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.