Evolution of Earnings and Rates of Returns to Education in Mexico
Reviewing the factors, and mechanisms that have been driving inequality in earnings in Mexico, the author finds that inequality in education, accounts for the largest share by far of the variation in earnings. In fact, the contribution of education...
| Main Author: | |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/10/1615018/evolution-earnings-rates-returns-education-mexico http://hdl.handle.net/10986/19515 |
| Summary: | Reviewing the factors, and mechanisms
that have been driving inequality in earnings in Mexico, the
author finds that inequality in education, accounts for the
largest share by far of the variation in earnings. In fact,
the contribution of educational inequality to earnings
inequality in Mexico, ranks second in size in Latin America,
after that in Brazil, and its significance has been
increasing. Moreover, the income effect is always prevalent,
and the distribution of education is highly significant,
even after controlling for changes in other relevant
variables, such as age, region, economic sector, and labor
market status. But the increase in earnings inequality in
Mexico, does not appear to be the result of a worsening in
the distribution of education - although the income profile,
which is related to returns to schooling, has become much
steeper. This means that the shift in demand toward
high-skilled labor, has not been matched by an increase in
supply. The probable reason: the increased economic openness
in Mexico has facilitated skill-biased technological change. |
|---|