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Ability, Schooling Choices And Gender Labor Market Discrimination: Evidence For Chile

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  • David Bravo Urrutia
  • Claudia Sanhueza
  • sergio Urzúa

Abstract

This paper presents a comprehensive analysis of the gender differences in the Chilean labor market. We formally deal with the selection of the individuals into schooling levels and its consequences on the gender gaps. Our approach allows for the presence of not only heterogeneity in observable variables but also unobserved heterogeneity. We link this unobserved heterogeneity to unobserved scholastic ability. In the analysis, we utilize a new and rich data set for Chile. This data set contains information on labor market outcomes (including labor history), on schooling attainment and schooling performance, and on a complete set of variables characterizing the family background of the individuals in the sampleOur results show that there exist statistically significant gender differences in several dimensions of the Chilean labor market. Nevertheless, we show that these gaps critically depend on the schooling level of the individuals considered in the analysis. For example, the results indicate that there are no gender differences in labor market variables among college graduates (except in the case of hourly wages). We interpret our results with prudence. Specifically, instead of interpreting our findings as decisive evidence of the existence of discrimination in the Chilean labor market, we argue that future research based on better information might indeed explain some of the unexplained labor market gaps presented in this paper. In this context, our results represent a new and important attempt to provide a full understanding of the structural causes of gender gaps in the Chilean labor market but they are not conclusive.

Suggested Citation

  • David Bravo Urrutia & Claudia Sanhueza & sergio Urzúa, 2007. "Ability, Schooling Choices And Gender Labor Market Discrimination: Evidence For Chile," Working Papers wp265, University of Chile, Department of Economics.
  • Handle: RePEc:udc:wpaper:wp265
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    References listed on IDEAS

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    1. Hansen, Karsten T. & Heckman, James J. & Mullen, K.J.Kathleen J., 2004. "The effect of schooling and ability on achievement test scores," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 39-98.
    2. Pedro Carneiro & Karsten T. Hansen & James J. Heckman, 2003. "Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College," NBER Working Papers 9546, National Bureau of Economic Research, Inc.
    3. Carneiro, Pedro & Hansen, Karsten T. & Heckman, James J., 2003. "Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College Choice," IZA Discussion Papers 767, Institute of Labor Economics (IZA).
    4. Pedro Carneiro & Karsten T. Hansen & James J. Heckman, 2003. "2001 Lawrence R. Klein Lecture Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College Choice," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 361-422, May.
    5. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
    6. Flavio Cunha & James Heckman & Salvador Navarro, 2005. "Separating uncertainty from heterogeneity in life cycle earnings," Oxford Economic Papers, Oxford University Press, vol. 57(2), pages 191-261, April.
    7. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
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    Cited by:

    1. Valentina Rivera & Francisca Castro, 2021. "Between Social Protests and a Global Pandemic: Working Transitions under the Economic Effects of COVID-19," Social Sciences, MDPI, vol. 10(4), pages 1-21, April.
    2. Pablo Lavado & Gustavo Yamada, 2013. "Fear of Labor Rigidities – The Role of Expectations in Employment Growth in Peru," Working Papers 13-16, Centro de Investigación, Universidad del Pacífico.
    3. Sanchez, Rafael & Finot, Javier & Villena, Mauricio G., 2019. "Gender Wage Gap and Firm Market Power in Chile," MPRA Paper 99149, University Library of Munich, Germany, revised 01 Sep 2019.
    4. Pablo Lavado & Luciana Velarde & Gustavo Yamada, 2022. "Cognitive and socioemotional skills and wages: the role of latent abilities on the gender wage gap in Peru," Review of Economics of the Household, Springer, vol. 20(2), pages 471-496, June.
    5. Gustavo, Yamada & Pablo, Lavado & Luciano, Velarde, 2014. "Habilidades no cognitivas y brecha de género salarial en el Perú," Estudios Públicos, Centro de Estudios Públicos, vol. 0(135), pages 89-129.
    6. Bueno, Ivonne & Perticará, Marcela, 2009. "A new approach to gender wage gaps in Chile," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    7. Tomás Rau & Eugenio Rojas & Sergio Urzúa, 2013. "Loans for Higher Education: Does the Dream Come True?," NBER Working Papers 19138, National Bureau of Economic Research, Inc.
    8. Nicola Brandt, 2012. "Reducing Poverty in Chile: Cash Transfers and Better Jobs," OECD Economics Department Working Papers 951, OECD Publishing.

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