Education and Earnings Inequality in Mexico

Lächler, Ulrich

doi:10.1596/1813-9450-1949

Cited by 24 publications

(24 citation statements)

References 8 publications

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“…Esquivel and Rodríguez-López (2003) use a different definition of wage premium, focusing on skilled and non-skilled workers (defined as non-production and production workers), and consider only manufacturing employment. In accordance with Bouillon (2002) and Lächler (1998), they find that the wage premium rose after 1988, but plateaued in the mid-1990s. Robertson (2007) defines the wage premium as in Esquivel and Rodríguez-López (2003), and finds that it rose steeply prior to 1994, continued to rise slowly until 1999, and declined in the period up to 2005.…”

Section: The Wage Premium and The Returns To Education In Mexicosupporting

confidence: 85%

“…Bouillon (2002) defines the wage premium as the ratio of wages of workers with more than a high school education to those with primary education or less, and finds that the premium rose between 1984and 1994. Lächler (1998 finds an increase in the dispersion of earnings across different schooling levels from 1984-1994, and also finds that wages rose for workers with a high school education or more but fell for less-educated workers.…”

Section: The Wage Premium and The Returns To Education In Mexicomentioning

confidence: 99%

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Labor Earnings, Misallocation, and the Returns to Education in Mexico

Levy

López-Calva²

2016

SSRN Journal

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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. 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. Terms of use: Documents inFollowing 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 2016 1 Abstract * Over the last two decades Mexico has had an open trade regime, experienced macroeconomic stability, and made substantial progress in education. However, average workers' earnings have stagnated and earnings for workers with more schooling have declined, compressing the earnings distribution and lowering the returns to education. We hypothesize that these developments are explained by large and persistent of distortions that misallocate resources towards less productive firms, since these firms are substantially less intensive in educated workers than more productive ones. We show that at the same time that the relative supply of workers with more years of schooling has increased, misallocation of resources toward less productive firms has persisted. These two trends have generated a widening mismatch between the supply and demand for educated workers. We decompose worker earnings into observable and unobservable firm and individual worker characteristics, and simulate a counterfactual earnings distribution in the absence of misallocation. Under the counterfactual, e...

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Section: The Wage Premium and The Returns To Education In Mexicosupporting

confidence: 85%

Section: The Wage Premium and The Returns To Education In Mexicomentioning

confidence: 99%

Labor Earnings, Misallocation, and the Returns to Education in Mexico

Levy

López-Calva²

2016

SSRN Journal

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“…These developments in returns to education in Venezuela from 2000 to 2002 are consistent with happenings in the 1990s in other middle-income Latin American counties such as Brazil, Mexico, Chile and Argentina (e.g., Kugler and Psacharopoulos, 1989;Lachler, 1998;Blom et al, 2001;Fiszbein et al, 2004 andPsacharopoulos et al, 1996). In these countries, the returns to secondary and tertiary education were also on rise, along with the overall return to schooling.…”

Section: Literature Reviewsupporting

confidence: 68%

Are returns to education on the decline in Venezuela and does Mission Sucre have a role to play?

Gonzalez

Oyelere

2011

Economics of Education Review

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Anecdotal evidence points to a falling standard of living for the educated in Venezuela. During this same period, President Hugo Chávez implemented several education reforms. We focus on a major university education reform known as Mission Sucre and its potential impact on returns to university education. First, we show that returns to education decreased significantly in Venezuela from 2002 to 2008. Subsequently, we explore the impact of the program on nonprogram participants and provide evidence that a substantial part of the falling returns at the tertiary level can be linked to Mission Sucre. Our results suggest that the reform created a negative externality on students who did not participate in the program, leading to a 2.7 percentage point decline in returns to university education for non-Mission Sucre students in the 23-28 age cohort.

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“…While globalization has multiple economic, political, and cultural facets, when studying inequality most have focused on the eff ects of international trade, neglecting the signifi cance of foreign ownership (Rodrick 1997;Ferreira and Litchfi eld 1998;Lachler 1998;WDR 2000/01). Similarly, with some important exceptions (i.e.…”

Section: Introductionmentioning

confidence: 99%

The Resilience of Dependency Effects in Explaining Income Inequality in the Global Economy: A Cross National Analysis, 1975-1995

Beer

Boswell

2002

JWSR

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The contemporary era is one of both accelerated economic globalization and rising inequality. There is an increasing awareness among both academic scholars and development professionals that globalization puts certain populations at risk. However, there has been inadequate theoretical analysis and a lack of up to date empirical studies that explain just how contemporary globalization a?ects inequality and the well being of individuals. This study explores the conditions under which TNC penetration and other globalization processes in?uence change in domestic income distribution. Its aim is to investigate whether theoretical models that have proven successful in explaining di?erences in income inequality cross-sectionally also allow for an understanding of the dynamics of income distribution during the 1980s and early 1990s, an era characterized by a dramatic acceleration of globalization. We present an analysis of change in national income distribution using linear regression models with a panel design. This study suggests that dependence on foreign investment as a development strategy, especially compared to domestic and human capital investment, may be misguided for nations concerned with equality. Net of other factors, foreign investment dependence bene?ts the elite segments of the income-earning population over the poorer eighty percent. Our analysis provides evidence of a shift in capital/labor relations brought about by globalization that has signi? cantly contributed to the rise in income inequality seen throughout the world.

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Education and Earnings Inequality in Mexico

Cited by 24 publications

References 8 publications

Labor Earnings, Misallocation, and the Returns to Education in Mexico

Labor Earnings, Misallocation, and the Returns to Education in Mexico

Are returns to education on the decline in Venezuela and does Mission Sucre have a role to play?

The Resilience of Dependency Effects in Explaining Income Inequality in the Global Economy: A Cross National Analysis, 1975-1995

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