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Desigualdad salarial en uruguay, 1981-207

Author

Listed:
  • Guillermo Alves

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Rodrigo Arim

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Gonzalo Salas

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Andrea Vigorito

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

Abstract

In the present paper we study the evolution of wage inequality in Uruguay from 1981 to 2007. To identify the main forces behind wage inequality evolution we apply the decomposition methodology proposed by Lemieux (2002). This methodology puts together the identification of the “price” effect by the method proposed by the Juhn, Murphy & Pierce (1993) with the identification of the “characteristics” effect by the method developed by DiNardo, Fortin & Lemieux (1996). An important advantage of the chosen methodology is that it allows to identify the effect of each observable characteristic of those included in the wage regression. We find that the rise observed in the level of wage inequality in the period occurred mainly during the nineties and that the main force driving wage inequality is the evolution of returns to education, specially at the tertiary level. Notwithstanding, the evolution and determinants above and bellow the median of the wage distribution are not the same. While in the upper part the rise took place in the nineties and was due to increasing returns to education, in the bottom of the distribution the rise occurred mainly during the macroeconomic crises of 1981 & 2002.

Suggested Citation

  • Guillermo Alves & Rodrigo Arim & Gonzalo Salas & Andrea Vigorito, 2009. "Desigualdad salarial en uruguay, 1981-207," Documentos de Trabajo (working papers) 09-05, Instituto de Economía - IECON.
  • Handle: RePEc:ulr:wpaper:dt-05-09
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    References listed on IDEAS

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    Cited by:

    1. Guillermo Alves & Verónica Amarante & Gonzalo Salas & Andrea Vigorito, 2012. "La desigualdad del ingreso en Uruguay entre 1986 y 2009," Documentos de Trabajo (working papers) 12-03, Instituto de Economía - IECON.
    2. Ivone Perazzo, 2012. "El mercado laboral uruguayo en la última década," Documentos de Trabajo (working papers) 12-01, Instituto de Economía - IECON.

    More about this item

    Keywords

    Wage inequality; Decomposition; returns to education;

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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