Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America
Manuel Fernandez Sierra () and
Julian Messina ()
No 10718, IZA Discussion Papers from Institute of Labor Economics (IZA)
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: earnings inequality; unconditional quantile regressions; supply-demand framework; human capital (search for similar items in EconPapers)
JEL-codes: E24 J20 J31 (search for similar items in EconPapers)
Pages: 57 pages
New Economics Papers: this item is included in nep-lam and nep-mac
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Working Paper: Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America (2020)
Journal Article: Skill premium, labor supply, and changes in the structure of wages in Latin America (2018)
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