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

  • Tello, Claudia

    ()

    (University of Barcelona)

  • Ramos, Raul

    ()

    (University of Barcelona)

  • Artís, Manuel

    ()

    (University of Barcelona)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6576.

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Length: 42 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6576
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