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A Cohort Analysis of the College Premium in Mexico

Francisco Benita

Latin American Journal of Economics-formerly Cuadernos de Economía, 2014, vol. 51, issue 1, 147-178

Abstract: This paper provides the first empirical evidence for Mexico about relative wage dif ferences between college-educated and high-school-educated workers across five-year age groups. Rotating panel surveys are used to implement an imperfect substitution model for similar male workers between dif ferent age groups and between the two education groups. For the period 2005-2012, the results suggest a partial elasticity of substitution of 1.7 for college- and high-school-educated workers and a partial elasticity of substitution of about 3 across age groups. Remarkably, the wage gap between younger and older workers with the same education level increased after the economic crisis of 2008.

Keywords: Wage dif ferentials; cohort ef fects; rotating panel; elasticity of substitution; Mexico (search for similar items in EconPapers)
JEL-codes: C33 J21 J31 (search for similar items in EconPapers)
Date: 2014
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Latin American Journal of Economics-formerly Cuadernos de Economía is currently edited by Raimundo Soto

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