Decline in Values of Degrees and Recent Evolution of Wage Inequality: Evidence from Chile

Yoshimichi Murakami and Tomokazu Nomura

No DP2021-09, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: Using the latest available data from nationally representative household surveys, we analyze the association between changes in returns to higher education degrees and the evolution of wage inequality in Chile from 2013–2017. Employing a decomposition method using unconditional quantile regressions, we find that a significant decline in returns to professional degrees especially from new private universities, with a larger magnitude at upper quantiles, is associated with a substantial reduction in wage inequality, especially for younger graduates. The results are robust to the correction for sample selection bias, controlling for workers' occupation categories, and the choice of the analysis period.

Keywords: Higher education; Returns to degree; Wage inequality (search for similar items in EconPapers)
JEL-codes: I23 I24 I26 J31 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2021-03, Revised 2022-03
New Economics Papers: this item is included in nep-lam and nep-lma
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https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2021-09.pdf Revised version, 2022 (application/pdf)

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Journal Article: Decline in values of degrees and recent evolution of wage inequality: Evidence from Chile (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:dp2021-09

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