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Changes in wage structure in Mexico going beyond the mean: An analysis of differences in distribution, 1987-2008

Author

Listed:
  • Claudia Tello

    (AQR-IREA, Universitat de Barcelona, Spain)

  • Raul Ramos

    (AQR-IREA, Universitat de Barcelona, Spain)

  • Manuel Artís

    (AQR-IREA, Universitat de Barcelona, Spain)

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.

Suggested Citation

  • Claudia Tello & Raul Ramos & Manuel Artís, 2012. "Changes in wage structure in Mexico going beyond the mean: An analysis of differences in distribution, 1987-2008," Working Papers XREAP2012-07, Xarxa de Referència en Economia Aplicada (XREAP), revised May 2012.
  • Handle: RePEc:xrp:wpaper:xreap2012-07
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    wage inequality; quantile regressions; decomposition.;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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