Meza González, Liliana
Using data from the National Urban Employment Survey, 1988-1999, this paper tries to separate the local and the national forces behind the increasing wage inequality in Mexico. The paper analyzes the trend of 3 different inequality measures in 16 different local labor markets and shows that the rising Mexican wage inequality is concentrated in the southern and central cities, while northern border cities seem to have experienced significant drops in wage inequality. Using the variability in the inequality measures at a local level, the analysis combines cross section and time series data to understand the role that local demographic, industrial...
Jaramillo Baanante, Miguel
Latin American labor markets feature large informal sectors. In practice, however, the simple duality formal-informal has many different shades: firms tend to comply more with certain legislation than with other. Recent evidence has suggested that minimum wages have significant effects on the informal sector (Bell (1997) for Mexico; Gindling and Terrell (2004) for Costa Rica; Lemos (2004) and Fajnzylver (2001) for Brazil; and Maloney and Nuñez (2004) for Colombia). Further, some of this evidence suggests effects throughout a large part of the wage distribution. This has been interpreted as evidence of 'lighthouse' or numeraire effects. We test this hypothesis using...
Minimum wage legislation is potentially a powerful policy tool to help alleviate poverty in developing countries. This is especially the case when the detrimental employment effects are small. However, of critical importance is whether, and to what extent, minimum wage increases will generate price effects that might adversely affect the poor. This might occur, firstly, if the poor consume a lot of goods produced in sectors dominated by minimum wage workforces. Secondly, this may occur if minimum wage increases raise overall prices, as the poor disproportionately suffer from inflationary costs. In this paper we estimate minimum wage price effects for...
Olivieri, Sergio; Horenstein, Matías
This paper applies newly developed methods for the computation of income polarization by Duclos-Esteban-Ray (2004) to the Argentine case between 1998 and 2002. We find that despite the slowdown in the growth of the inequality, the rate of growth of polarization increased every year. Low-income groups in the population were those who contributed the most to polarization. The results of a micro-decomposition show that on average all the effects led to an increase in polarization between 1998 and 2002. Although most of the change came from unobservable factors, region, returns to education and return to experience had a moderate impact....
Applying the methodology developed in Ñopo (2004), I analyze the evolution of the gender wage gap in Peru from 1986 to 2000. The advantage of such methodology is two-fold. First, it recognizes that the supports of observable characteristics distributions differ substantially. Second, it provides deeper insights regarding the distribution of the unexplained gender differences in earnings. For the period under analysis, males earn on average 45% more than females. This wage gap is composed of three additive elements: 11% differences in supports, 6% differences in distributions of individual characteristics and 28% unexplainable differences. About half of these unexplainable differences occur...
The papers included in this special issue of the journal Económica are the result of a long period of gestation. I am glad to see that the final outcome contains substantial value added. The project is one of the activities undertaken by the Argentine Chapter of the Network of Inequality and Poverty of the Latin American and Caribbean Economic Association that I coordinate since 2002.