Changes in Returns to Education in Latin America: The Role of Demand and Supply of Skills

Manacorda, Marco; Sánchez-Páramo, Carolina; Schady, Norbert

doi:10.1177/001979391006300207

Cited by 101 publications

(120 citation statements)

References 38 publications

Supporting

Mentioning

101

Contrasting

Unclassified

Order By: Relevance

“…this elasticity is higher than the 1.4 and 1.6 values reported by Katz and Murphy (1992) and Johnson and Keane (2013) respectively for the United States; it is in line with the 2-2.5 range estimated by Card and Lemieux (2001) also in the United States; and is somewhat lower than the 2.5-5 range reported by Manacorda et al (2010) for the Latin American region. Estimates of the other elasticities of substitution are very similar to those obtained in columns 1-3.…”

Section: Step IIIsupporting

confidence: 81%

See 1 more Smart Citation

Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America

Fernández¹,

Messina²

2017

View full text Add to dashboard Cite

work is licensed under a Creative Commons IGO 3.0 AttributionNonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose, as provided below. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Following a peer review process, and with previous written consent by the Inter-American Development Bank (IDB), a revised version of this work may also be reproduced in any academic journal, including those indexed by the American Economic Association's EconLit, provided that the IDB is credited and that the author(s) receive no income from the publication. Therefore, the restriction to receive income from such publication shall only extend to the publication's author(s). With regard to such restriction, in case of any inconsistency between the Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives license and these statements, the latter shall prevail.Note that link provided above includes additional terms and conditions of the license.The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.http://www.iadb.org 2017 Abstract * 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.JEL classifications: J20, J31

show abstract

Section: Step IIIsupporting

confidence: 81%

“…We mostly follow the work of Manacorda et al (2010), with some small modifications to allow for comparability with our baseline results. Production in the economy is also modeled using a nested constant elasticity of substitution (CES) function with three levels.…”

Section: A4 Alternative Model Specificationmentioning

confidence: 99%

Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America

Fernández¹,

Messina²

2017

View full text Add to dashboard Cite

show abstract

“…The estimated elasticity of substitution between skilled and unskilled labor is 2.1, very close to the elasticity of substitution between the two unskilled subgroups. Our point estimate for this elasticity is higher than the 1.4 and 1.6 values reported by Katz and Murphy (1992) and Johnson and Keane (2013) respectively for the United States; it is in line with the 2-2.5 range estimated by Card and Lemieux (2001) also in the United States; and is somewhat lower than the 2.5-5 range reported by Manacorda et al (2010) for the Latin American region. Estimates of the other elasticities of substitution are very similar to those obtained in columns 1-3.…”

Section: Step IIIsupporting

confidence: 81%

“…6 See Cragg and Epelbaum (1996); Londoño and Szekely (2000); Sanchez-Paramo and Schady (2003); Behrman et al (2007);Cornia (2010); Manacorda et al (2010) among others.…”

Section: Data and Stylized Factsmentioning

confidence: 99%

Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America

Sierra

Messina

2017

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America APrIl 2017Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.Schaumburg-Lippe-Straße 5-9 53113 Bonn, GermanyPhone: +49-228-3894-0 Email: publications@iza.org www.iza.org IZA -Institute of Labor EconomicsDiscussion PaPer series IZA DP No. 10718 Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin AmericaAPrIl 2017 Manuel Fernández University of Oxford Julián MessinaInter Changes in the minimum wage, and more importantly, commodity-led terms of trade improvements are key factors behind these relative skill demand trends. JEL Classification:E24, J20, J31

show abstract

“…Por un lado, existen trabajos que evidencian que los cambios en la composición de la oferta relativa de trabajadores cualificados y el bajo ritmo al que se ha incrementado su demanda parecen dominar, debidos probablemente al incremento sustancial del gasto de gobierno dirigido a expandir la educación básica (Montes, 2006;Campos et al, 2012;Esquivel et al, 2012y Lustig et al, 2013. Por otro lado, Gasparini et al (2011) y Manacorda et al (2010 encuentran que los cambios en la composición de la demanda relativa a través del incremento de trabajo cualificado son los dominantes, los cuales fueron sólo parcialmente compensados por un incremento en su oferta relativa. Por tanto, no existe un consenso claro en la evidencia disponible hasta el momento de cuál de estos efectos explica la mayor parte del efecto agregado total sobre los salarios promedio.…”

Section: Conclusionesunclassified

Externalidades del capital humano en México

Peralta

2016

El Trimestre

View full text Add to dashboard Cite

This paper estimates human capital externalities in Mexico using the traditional approaches in the literature. We control the potential endogenenity of individual and average schooling with instrumental variables techniques. We use as instruments, the educational reform of 1993 of compulsory secondary education and the proportion of graduates from upper secondary and higher education and the structure of the population of the states in a previous period. The results show that there is a strong positive and statistically significant relationship between experience, individual education and average education with individual wages. Also we confirmed by the implementation of the various approaches through the coincidence of the results that there are significant human capital externalities at state level in Mexico for the period 2000-2010.

show abstract

Changes in Returns to Education in Latin America: The Role of Demand and Supply of Skills

Cited by 101 publications

References 38 publications

Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America

Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America

Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America

Externalidades del capital humano en México

Contact Info

Product

Resources

About