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Please use this identifier to cite or link to this item: http://hdl.handle.net/10625/48804

Title: Educational upgrading and returns to skills in Latin America : evidence from a supply-demand framework, 1990-2010
Authors: Gasparini, Leonardo
Galiani, Sebastián
Cruces, Guillermo
Acosta, Pablo
Keywords: SKILL PREMIA
SUPPLY AND DEMAND OF LABOR
INCOME INEQUALITY
LATIN AMERICA
LABOUR LAW
LABOUR LEGISLATION
LABOUR MARKET
LABOUR POLICY
LABOUR PRODUCTIVITY
INFORMAL SECTOR
SOCIAL POLICY
SOCIAL LEGISLATION
SOCIAL SECURITY
SOCIAL EQUITY
SUPPLY AND DEMAND
Issue Date: 2011
Publisher: IZA, Bonn, DE
Series/Report no.: Discussion paper series / IZA; no. 6244
Abstract: It has been argued that a factor behind the decline in income inequality in Latin America in the 2000s was the educational upgrading of its labor force. Between 1990 and 2010, the proportion of the labor force in the region with at least secondary education increased from 40 to 60 percent. Concurrently, returns to secondary education completion fell throughout the past two decades, while the 2000s saw a reversal in the increase in the returns to tertiary education experienced in the 1990s. This paper studies the evolution of wage differentials and the trends in the supply of workers by educational level for 16 Latin American countries between 1990 and 2000. The analysis estimates the relative contribution of supply and demand factors behind recent trends in skill premia for tertiary and secondary educated workers. Supply-side factors seem to have limited explanatory power relative to demand-side factors, and are only relevant to explain part of the fall in wage premia for high-school graduates. Although there is significant heterogeneity in individual country experiences, on average the trend reversal in labor demand in the 2000s can be partially attributed to the recent boom in commodity prices that could favor the unskilled (non-tertiary educated) workforce, although employment patterns by sector suggest that other within-sector forces are also at play, such as technological diffusion or skill mismatches that may reduce the labor productivity of highly-educated workers.
URI: http://hdl.handle.net/10625/48804
Project Number: 105653
Project Title: Labour Markets for Inclusive Growth in Latin America
Document Delivery: To enquire about document delivery, contact the IDRC Library : library@idrc.ca or 613-696-2578 / Pour plus de renseignements sur la livraison de documents, communiquer avec la bibliothèque du CRDI : bibliothèque@crdi.ca ou 613-696-2578
Appears in Collections:2010-2019 / Années 2010-2019
IDRC Research Results / Résultats de recherches du CRDI
Research Results (GGP) / Résultats de recherches (MCP)
Labour Markets and Migration / Marchés du travail et migrations

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