Group Heterogeneity and the Gender Earnings Gap in Mexico

José A. Pagán () and Miren Ullibarri ()
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José A. Pagán: Department of Economics and Finance, The University of Texas-Pan American.
Miren Ullibarri: Department of Economics, Universidad Pública de Navarra.

Economía Mexicana NUEVA ÉPOCA, 2000, vol. IX, issue 1, 23-40

Abstract: This study analyzes the role of group heterogeneity on the gender earnings gap in Mexico. Using individual level data from the Encuesta nacional de empleo urbano, an additively decomposable index of the extent of gender unexplained wage inequality is estimated. The Jenkins index is larger for those with lower levels of education, those with a college/ university degree, and those relatively older and with more labor market experience. The index is also inversely related to firm size and larger in the private and informal sectors. There is also some evidence of significant regional differences in unexplained gender wage inequality. The results are robust to alternative assumptions about employer discrimination aversion and suggest that group-specific public policy measures would be more effective than programs targeting women as a whole, if the goal is to reduce gender pay inequities as delineated in Mexico’s National Development Plan 1995-2000.

Date: 2000
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