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 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.

Bibliographic Details

Main Author:	Lopez-Acevedo, Gladys
Language:	English en_US
Published:	World Bank, Washington, DC 2001-10
Subjects:	CAPITAL GAINS, COMPARATIVE ADVANTAGE, DATA SET, DECOMPOSITION ANALYSIS, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DOMESTIC DEMAND, EARNINGS INEQUALITY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC SECTOR, ECONOMIC SECTORS, ECONOMIC STAGNATION, EDUCATIONAL ATTAINMENT, EDUCATIONAL INEQUALITY, EGALITARIAN DISTRIBUTION, ELASTICITIES, EMPLOYMENT, ENDOGENOUS VARIABLE, EXPENDITURES, EXPLANATORY POWER, EXPORTS, FINANCIAL CRISIS, GDP, GDP PER CAPITA, GINI COEFFICIENT, GROSS DOMESTIC PRODUCT, GROSS DOMESTIC PRODUCT PER CAPITA, GROWTH RATE, HOUSEHOLD INCOME, HOUSEHOLD MEMBERS, IMPORTS, INCOME, INCOME DISTRIBUTION, INCOME EFFECT, INCOME INEQUALITY, INCOME SHARE, INCREASING RETURNS, INEQUALITY INDEX, INEQUALITY MEASURE, INEQUALITY MEASURES, INFLATION, INTERNATIONAL EXCHANGE, LABOR FORCE, LABOR MARKET, MEAN INCOME, MONETARY TRANSFERS, NATIONAL LEVEL, POLICY RESEARCH, POPULATION SHARE, POVERTY REDUCTION, PRIMARY SCHOOL, PRIVATE SECTOR, PUBLIC POLICY, PUBLIC SECTOR, QUANTILE REGRESSIONS, REAL GDP, REAL WAGE, REAL WAGES, RELATIVE DEMAND, RELATIVE EARNINGS, RISING INEQUALITY, SKILL PREMIUM, SKILLED LABOR, SKILLED WORKERS, SOCIAL SERVICES, STRUCTURAL CHANGE, TECHNOLOGICAL CHANGE, TRADE BARRIERS, UNEMPLOYMENT, UNEMPLOYMENT RATE, UNEQUAL DISTRIBUTION, WAGE DECLINES, WAGE DIFFERENTIALS, WAGE INEQUALITY, WELL-BEING,
Online Access:	http://documents.worldbank.org/curated/en/2001/10/1615018/evolution-earnings-rates-returns-education-mexico https://hdl.handle.net/10986/19515
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