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Impact of Changes in Values of Degrees on 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 impact of changes in returns to higher education degrees on the evolution of wage inequality in Chile from 2013 to 2017. Employing a recently developed decomposition method using unconditional quantile regression and controlling for parental education levels, we find that a significant decrease in returns to professional degrees from new private universities plays a prominent role in reducing wage inequality. The effect is especially evident among younger graduates, thereby supporting the "degraded tertiary" hypothesis.

Suggested Citation

  • Yoshimichi Murakami & Tomokazu Nomura, 2021. "Impact of Changes in Values of Degrees on Wage Inequality: Evidence from Chile," Discussion Paper Series DP2021-09, Research Institute for Economics & Business Administration, Kobe University.
  • Handle: RePEc:kob:dpaper:dp2021-09
    as

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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

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    More about this item

    Keywords

    Higher education; Returns to degree; Wage inequality; Unconditional quantile regression; Chile;
    All these keywords.

    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
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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