Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America

Manuel Fernandez Sierra and Julian Messina

No 8219, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: Earnings inequality declined rapidly in Argentina, Brazil and Chile during the 2000s. A reduction in the experience premium is a fundamental driver of declines in upper-tail (90/50) inequality, while a decline in the education premium is the primary determinant of the evolution of lower-tail (50/10) inequality. Relative labor supply is important for explaining changes in the skill premiums. Relative demand trends favored high-skilled workers during the 1990s, shifting in favor of low-skilled workers during the 2000s. Changes in the minimum wage, and more importantly, commodity-led terms of trade improvements are key factors behind these relative skill demand trends.

Keywords: Unemployment; labor supply; Wage Gap; Minimun wage (search for similar items in EconPapers)
JEL-codes: J20 J31 (search for similar items in EconPapers)
Date: 2017-03
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Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Skill premium, labor supply, and changes in the structure of wages in Latin America (2018)
Working Paper: Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:8219

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