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Changes in Wage Structure in Mexico Going Beyond the Mean: An Analysis of Differences in Distribution, 1987-2008Claudia TelloUniversity of Barcelona - Department of Econometrics Raul RamosUniversity of Barcelona - AQR; Institute for the Study of Labor (IZA) Manuel ArtisAutonomous University of Barcelona - Department of Econometrics, Statistics and Spanish Economy May 15, 2012 XREA Working Paper No. 2012-07 Abstract: This paper conducts an empirical analysis of the relationship between wage inequality, employment structure, and returns to education in urban areas of Mexico during the past two decades (1987-2008). Applying Melly’s (2005) quantile regression based decomposition, we find that changes in wage inequality have been driven mainly by variations in educational wage premia. Additionally, we find that changes in employment structure, including occupation and firm size, have played a vital role. This evidence seems to suggest that the changes in wage inequality in urban Mexico cannot be interpreted in terms of a skill-biased change, but rather they are the result of an increasing demand for skills during that period.
Number of Pages in PDF File: 56 Keywords: wage inequality, quantile regressions, decomposition JEL Classification: J31 working papers seriesDate posted: May 15, 2012Suggested CitationContact Information
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