Returns to education, sector premiums, and male wage inequality in Mexico
By César Bouillon (10/00, En) See also Poverty and Inequality
As measured by the Gini coefficient, male wage inequality in Mexico rose 10 points between 1984 and 1994?a considerable jump. Many studies indicate that the increase in male wage inequality was due to an increase in returns to education and skills?a common trend in Latin American countries. This paper examines Mexico?s increase in wage inequality using data from household surveys (Encuesta Nacional de Ingreso Gasto de los Hogares de México) produced by the Mexican Institute for Statistics, Geography and Informatics (Instituto Nacional de Estadística, Geografia e Informática). An econometric simulation technique based on Juhn, Murphy, and Pierce (1993) and developed for the household level by Bourguignon, Fournier, and Gurgand (1998) is used to measure the contribution of changes in skill premiums and sector returns to the increase in inequality in Mexican males? wages during the period of analysis.
Last updated: 05/08/07
