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Descomponiendo la Desigualdad Salarial en la República Dominicana: Análisis Empírico para el Periodo 2000-2011
[Decomposing Wage Inequality in the Dominican Republic: Empirical Analysis for the Period 2000-2011]


  • Ramirez, Francisco A.


In this paper I analyze the dynamics of wage inequality in the Dominican Republic for the period 2000-2011. The analysis focuses on the evolution of wage inequality and the causal factors behind this phenomena. Using quantile regressions and data from the National Survey of Labour Force, several findings can be enumerated. First, a significant decline in real hourly wage is observed during the period 2000-2011 due to the macroeconomic effects of the banking crisis of 2003. Second, a reduction in overall inequality is verified, induced by a contraction of wages at the top end of the distribution, greater than that experienced in the lower percentiles. Finally, the decomposition in inequality between groups and within groups, suggests that over 70 percent of the total wage dispersion is explained by the latter. However, most of the fall in inequality is due the reduction of inequality between groups, guided by a reduction in the returns to education in the higher percentiles and a reduction in the wage gap between women and men in the lower end of the distribution .

Suggested Citation

  • Ramirez, Francisco A., 2012. "Descomponiendo la Desigualdad Salarial en la República Dominicana: Análisis Empírico para el Periodo 2000-2011
    [Decomposing Wage Inequality in the Dominican Republic: Empirical Analysis for the Per
    ," MPRA Paper 51993, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:51993

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    References listed on IDEAS

    1. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    2. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 35-78.
    3. David Card & Thomas Lemieux, 2001. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 705-746.
    4. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    5. Christian Manuel Posso, 2010. "Desigualdad salarial en Colombia 1984-2005: cambios en la composición del mercado laboral y retornos a la educación post-secundaria," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, December.
    6. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, March.
    7. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, January.
    8. Dante Contreras Guajardo & Sebastián Gallegos, 2007. "Descomponiendo la Desigualdad Salarial en América Latina: Una Década de Cambios," Working Papers wp262, University of Chile, Department of Economics.
    9. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-392, June.
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    More about this item


    Wage inequality; quantile regression; Dominican Republic;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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