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Decline in Values of Degrees and Recent Evolution of Wage Inequality: Evidence from Chile

Author

Listed:
  • Yoshimichi Murakami

    (Research Institute for Economics and Business Administration(RIEB), Kobe University, JAPAN)

  • Tomokazu Nomura

    (Faculty of Information Technology and Social Sciences, Osaka University of Economics, JAPAN)

Abstract

Using the latest available data from nationally representative household surveys, we analyze the association between changes in returns to higher education degrees and the evolution of wage inequality in Chile from 2013–2017. Employing a decomposition method using unconditional quantile regressions, we find that a significant decline in returns to professional degrees especially from new private universities, with a larger magnitude at upper quantiles, is associated with a substantial reduction in wage inequality, especially for younger graduates. The results are robust to the correction for sample selection bias, controlling for workers' occupation categories, and the choice of the analysis period.

Suggested Citation

  • Yoshimichi Murakami & Tomokazu Nomura, 2021. "Decline in Values of Degrees and Recent Evolution of Wage Inequality: Evidence from Chile," Discussion Paper Series DP2021-09, Research Institute for Economics & Business Administration, Kobe University, revised Mar 2022.
    • Handle: RePEc:kob:dpaper:dp2021-09
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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2021-09.pdf
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    References listed on IDEAS

    as
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    Keywords

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    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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