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Decreasing returns to schooling in Mexico

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  • Cinthya G. Caamal Olvera

    (Universidad Autónoma de Nuevo León)

Abstract

The aim of this paper is to study the relationship between a growing better educated labour force in Mexico and labour market reward. The paper provides robust estimates of the returns to education, dealing with the ability and selectivity biases using parametric, semi-parametric, and semi-nonparametric methods. The empirical strategy allows comparing the returns to education across quantiles to analyse the inequality variations within the conditional wage distribution over time. Data reveal a declining trend in the returns to education over time. Results also indicate that the inequality between the top and lower quantiles has been reduced.

Suggested Citation

  • Cinthya G. Caamal Olvera, 2017. "Decreasing returns to schooling in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(1), pages 27-63.
    • Handle: RePEc:emx:esteco:v:32:y:2017:i:1:p:27-63
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    More about this item

    Keywords

    returns to schooling; semi-nonparametric estimation; labour force;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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