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Changes in returns to education in Latin America: the role of demand and supply of skills

Manacorda, Marco and Sánchez-Páramo, Carolina and Schady, Norbert (2010) Changes in returns to education in Latin America: the role of demand and supply of skills. Industrial and Labor Relations Review, 63 (2). pp. 307-326. ISSN 0019-7939

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Identification Number: Article 7

Abstract

Using micro data for the urban areas of Argentina, Brazil, Chile, Colombia, and Mexico, the authors document trends in men’s returns to education during the 1980s and the 1990s and estimate the role of supply and demand factors in explaining the changes in skill premia. They propose a model of demand for skills with three production inputs, corresponding to workers with primary-, secondary-, and university-level education. Further, the authors demonstrate that an unprecedented rise in the supply of workers having completed secondary-level education depressed their wages relative to workers with primary-level education throughout Latin America. This supply shift was compounded by a generalized shift in the demand for workers with tertiary education.

Item Type: Article
Official URL: http://www.ilr.cornell.edu/ilrreview/
Additional Information: © 2010 Cornell University
Subjects: F History United States, Canada, Latin America > F1201 Latin America (General)
H Social Sciences > HD Industries. Land use. Labor
L Education > L Education (General)
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 18 Dec 2013 09:24
Last Modified: 18 Dec 2013 09:24
URI: http://eprints.lse.ac.uk/id/eprint/55002

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