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Declining Wages for College-Educated Workers in Mexico: Are Younger or Older Cohorts Hurt the Most?

Listed author(s):
  • Raymundo M. Campos-Vazquez

    ()

    (Centro de Estudios Economicos, El Colegio de Mexico)

  • Luis F. Lopez-Calva

    ()

    (Development Economics Vice Presidency, World Bank)

  • Nora Lustig

    ()

    (Department of Economics, Tulane University)

Wage inequality has declined in Mexico since 2000. Using data from Mexican labor surveys for the period between 2000 and 2014, we investigate if the decline was driven by wages declining more sharply for younger or older workers. We find that wages of older workers declined and the decline was more pronounced in the older the cohort. This would seem to support the hypothesis that older workers' skills have become obsolete.

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File URL: http://econ.tulane.edu/RePEc/pdf/tul1522.pdf
File Function: First Version, November 2015
Download Restriction: no

Paper provided by Tulane University, Department of Economics in its series Working Papers with number 1522.

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Date of creation: Nov 2015
Handle: RePEc:tul:wpaper:1522
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  1. Azevedo, Joao Pedro & Inchauste, Gabriela & Sanfelice, Viviane, 2013. "Decomposing the recent inequality decline in Latin America," Policy Research Working Paper Series 6715, The World Bank.
  2. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
  3. David H. Autor & Alan Manning & Christopher L. Smith, 2016. "The Contribution of the Minimum Wage to US Wage Inequality over Three Decades: A Reassessment," American Economic Journal: Applied Economics, American Economic Association, vol. 8(1), pages 58-99, January.
  4. Card, David & Heining, Jörg & Kline, Patrick, 2013. "Workplace Heterogeneity and the Rise of West German Wage Inequality," IZA Discussion Papers 7200, Institute for the Study of Labor (IZA).
  5. Raymundo M. Campos Vazquez & Andres Hincapie & Ruben Irvin Rojas-Valdes, 2012. "Family Income Inequality and the Role of Married Females' Earnings in Mexico: 1988-2010," Serie documentos de trabajo del Centro de Estudios Económicos 2012-08, El Colegio de México, Centro de Estudios Económicos.
  6. Maarten Goos & Alan Manning, 2003. "Lousy and lovely jobs: the rising polarization of work in Britain," LSE Research Online Documents on Economics 20002, London School of Economics and Political Science, LSE Library.
  7. Francois Bourguignon & Francisco H.G. Ferreira & Nora Lustig, 2005. "The Microeconomics of Income Distribution Dynamics in East Asia and Latin America," World Bank Publications, The World Bank, number 14844.
  8. Maarten Goos & Alan Manning, 2003. "Lousy and Lovely Jobs: the Rising Polarization of Work in Britain," CEP Discussion Papers dp0604, Centre for Economic Performance, LSE.
  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. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
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