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A Cohort Analysis of the College Premium in Mexico

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  • Francisco Benita

Abstract

This paper provides the first empirical evidence for Mexico about relative wage dif ferences between college-educated and high-school-educated workers across five-year age groups. Rotating panel surveys are used to implement an imperfect substitution model for similar male workers between dif ferent age groups and between the two education groups. For the period 2005-2012, the results suggest a partial elasticity of substitution of 1.7 for college- and high-school-educated workers and a partial elasticity of substitution of about 3 across age groups. Remarkably, the wage gap between younger and older workers with the same education level increased after the economic crisis of 2008.

Suggested Citation

  • Francisco Benita, 2014. "A Cohort Analysis of the College Premium in Mexico," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 51(1), pages 147-178, May.
    • Handle: RePEc:ioe:cuadec:v:51:y:2014:i:1:p:147-178
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    Cited by:

    1. López-Calva, Luis Felipe & Levy Algazi, Santiago, 2016. "Labor Earnings, Misallocation, and the Returns to Education in Mexico," IDB Publications (Working Papers) 7454, Inter-American Development Bank.

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    More about this item

    Keywords

    Wage dif ferentials; cohort ef fects; rotating panel; elasticity of substitution; Mexico;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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