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Explaining changes in Sri Lanka’s wage distribution, 1992-2014: a quantile regression analysis

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  • Prathi Seneviratne

Abstract

Sri Lanka experienced robust economic growth during the period 1992–2014 and had a decline in inequality due to wages rising fastest among low earners. The decline in inequality came almost entirely from rising rewards to low-skill labor, consistent with Sri Lanka’s comparative advantage in the global economy. However, educational and occupational upgrading served to widen wage gaps between the highest earners and the rest of the workforce. Using quantile regression analysis, this study also finds that selection bias overestimates average wages and underestimates the level of inequality, while exaggerating the extent to which women’s wages grew. It concludes with a discussion of the negative implications of persistent inequities across education, occupation, and gender, and recommends policies to address them.

Suggested Citation

  • Prathi Seneviratne, 2019. "Explaining changes in Sri Lanka’s wage distribution, 1992-2014: a quantile regression analysis," Oxford Development Studies, Taylor & Francis Journals, vol. 47(2), pages 238-256, April.
    • Handle: RePEc:taf:oxdevs:v:47:y:2019:i:2:p:238-256
    DOI: 10.1080/13600818.2018.1551525
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    Cited by:

    1. Seneviratne, Prathi, 2020. "Gender wage inequality during Sri Lanka’s post-reform growth: A distributional analysis," World Development, Elsevier, vol. 129(C).
    2. Yoshimichi Murakami & Tomokazu Nomura, 2023. "Decline in values of degrees and recent evolution of wage inequality: Evidence from Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 50(1 Year 20), pages 55-132, June.

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