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

Author Info

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)

Abstract

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
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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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Keywords: education; college; cohort; inequality; Mexico;

Other versions of this item:

Find related papers by JEL classification:
  • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
  • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
  • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
  • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
  • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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  1. David Card & Jörg Heining & Patrick Kline, 2013. "Workplace Heterogeneity and the Rise of West German Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 128(3), pages 967-1015.
  2. 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.
  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. Maarten Goos & Alan Manning, 2007. "Lousy and Lovely Jobs: The Rising Polarization of Work in Britain," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 118-133, February.
  5. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
  6. Raymundo M. Campos-Vázquez & Andrés Hincapié & Ruben Irvin Rojas-Valdés, 2012. "Family Income Inequality and the Role of Married Females' Earnings in Mexico: 1988-2010," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(1), pages 67-98, May.
  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, October.
  8. 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.
  9. 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.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Declining wages for college-educated workers in Mexico : are younger or older cohorts hurt the most ?
    by maximorossi in NEP-LTV blog on 2016-02-11 17:26:09

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