Changes in Wage Structure in Mexico Going Beyond the Mean: An Analysis of Differences in Distribution, 1987-2008

Claudia Tello (), Raul Ramos and Manuel Artís
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Claudia Tello: University of Barcelona

No 6576, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper conducts an empirical analysis of the relationship between wage inequality, employment structure, and returns to education in urban areas of Mexico during the past two decades (1987-2008). Applying Melly's (2005) quantile regression based decomposition, we find that changes in wage inequality have been driven mainly by variations in educational wage premia. Additionally, we find that changes in employment structure, including occupation and firm size, have played a vital role. This evidence seems to suggest that the changes in wage inequality in urban Mexico cannot be interpreted in terms of a skill-biased change, but rather they are the result of an increasing demand for skills during that period.

Keywords: wage inequality; quantile regressions; decomposition (search for similar items in EconPapers)
JEL-codes: J31 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2012-05
New Economics Papers: this item is included in nep-lab, nep-lma and nep-ltv
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Citations: View citations in EconPapers (26)

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Related works:
Working Paper: Changes in Wage Structure in Mexico Going Beyond the Mean: An Analysis of Differences in Distribution, 1987-2008 (2013)
Working Paper: Changes in Wage Structure in Mexico Going Beyond the Mean: An Analysis of Differences in Distribution, 1987-2008 (2013)
Working Paper: Changes in wage structure in Mexico going beyond the mean: An analysis of differences in distribution, 1987-2008 (2012)
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