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Group Heterogeneity and the Gender Earnings Gap in Mexico

Author

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  • José A. Pagán

    (Department of Economics and Finance, The University of Texas-Pan American.)

  • Miren Ullibarri

    (Department of Economics, Universidad Pública de Navarra.)

Abstract

This study analyzes the role of group heterogeneity on the gender earnings gap in Mexico. Using individual level data from the Encuesta nacional de empleo urbano, an additively decomposable index of the extent of gender unexplained wage inequality is estimated. The Jenkins index is larger for those with lower levels of education, those with a college/ university degree, and those relatively older and with more labor market experience. The index is also inversely related to firm size and larger in the private and informal sectors. There is also some evidence of significant regional differences in unexplained gender wage inequality. The results are robust to alternative assumptions about employer discrimination aversion and suggest that group-specific public policy measures would be more effective than programs targeting women as a whole, if the goal is to reduce gender pay inequities as delineated in Mexico’s National Development Plan 1995-2000.

Suggested Citation

  • José A. Pagán & Miren Ullibarri, 2000. "Group Heterogeneity and the Gender Earnings Gap in Mexico," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(1), pages 23-40, January-J.
    • Handle: RePEc:emc:ecomex:v:9:y:2000:i:1:p:23-40
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    File URL: http://www.economiamexicana.cide.edu/num_anteriores/IX-1/02_JOSE_A_PAGAN_23-40.pdf
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    References listed on IDEAS

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    1. William J. Carrington & Kenneth R. Troske, 1995. "Gender Segregation in Small Firms," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 503-533.
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    1. Pedro Orraca & Francisco-Javier Cabrera & Centro de Investigacion y Docencia Economicas A. C., 2016. "The gender wage gap and occupational segregation in the Mexican labour market," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 13(1), pages 51-72, Enero-Jun.
    2. Atal, Juan Pablo & Ñopo, Hugo R. & Winder, Natalia, 2009. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," IDB Publications (Working Papers) 1131, Inter-American Development Bank.
    3. Pedro Orraca & Francisco Javier Cabrera & Gustavo Iriarte, 2016. "The gender wage gap and occupational segregation in the Mexican labour market," EconoQuantum, Revista de Economia y Negocios, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 13(1), pages 51-72, Enero-Jun.

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