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Skill premia in Mexico: demand and supply factors

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  • Gabriel Montes Rojas
Abstract
Skill premia trends for the Mexican urban labour market are analysed, decomposing into demand and supply factors. Moreover, among the former both between and within effects are studied, in line with the Katz and Murphy decomposition. It is shown that demand factors are more important for explaining the initial increment in skill premia, but supply factors are responsible for driving them down. It is concluded that the North American Trade Agreement (NAFTA) favours unskilled labour.

Suggested Citation

  • Gabriel Montes Rojas, 2006. "Skill premia in Mexico: demand and supply factors," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 917-924.
    • Handle: RePEc:taf:apeclt:v:13:y:2006:i:14:p:917-924
    DOI: 10.1080/13504850500426145
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    References listed on IDEAS

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    1. Arnaud Dupuy & Lex Borghans, 2005. "Supply and demand, allocation and wage inequality: an international comparison," Applied Economics, Taylor & Francis Journals, vol. 37(9), pages 1073-1088.
    2. Robertson, Raymond & Dutkowsky, Donald H., 2002. "Labor adjustment costs in a destination country: the case of Mexico," Journal of Development Economics, Elsevier, vol. 67(1), pages 29-54, February.
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    7. Cragg, Michael Ian & Epelbaum, Mario, 1996. "Why has wage dispersion grown in Mexico? Is it the incidence of reforms or the growing demand for skills?," Journal of Development Economics, Elsevier, vol. 51(1), pages 99-116, October.
    8. Francisco Galrao Carneiro & Jorge Saba Arbache, 2003. "Assessing the impacts of trade on poverty and inequality," Applied Economics Letters, Taylor & Francis Journals, vol. 10(15), pages 989-994.
    9. Kang-Shik Choi & Jinook Jeong, 2005. "Technological change and wage premium in a small open economy: the case of Korea," Applied Economics, Taylor & Francis Journals, vol. 37(1), pages 119-131.
    10. Robertson, Raymond, 2004. "Relative prices and wage inequality: evidence from Mexico," Journal of International Economics, Elsevier, vol. 64(2), pages 387-409, December.
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    Cited by:

    1. Pablo Acosta & Guillermo Cruces & Sebastian Galiani & Leonardo Gasparini, 2019. "Educational upgrading and returns to skills in Latin America: evidence from a supply–demand framework," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-20, December.
    2. André Varella Mollick & Jorge Ibarra-Salazar, 2013. "Productivity Effects on the Wage Premium of Mexican Maquiladoras," Economic Development Quarterly, , vol. 27(3), pages 208-220, August.
    3. Gasparini, Leonardo & Galiani, Sebastian & Cruces, Guillermo & Acosta, Pablo A., 2011. "Educational Upgrading and Returns to Skills in Latin America: Evidence from a Supply-Demand Framework, 1990-2010," IZA Discussion Papers 6244, Institute of Labor Economics (IZA).
    4. Montes-Rojas, Gabriel & Santamaria, Mauricio, 2007. "Sources of productivity growth: Evidence from the Mexican manufacturing sector," The North American Journal of Economics and Finance, Elsevier, vol. 18(3), pages 263-278, December.
    5. Mehta, Aashish & Mohr, Belinda Acuña, 2012. "Economic Liberalization and Rising College Premiums in Mexico: A Reinterpretation," World Development, Elsevier, vol. 40(9), pages 1908-1920.
    6. Binelli Chiara, 2015. "How the wage-education profile got more convex: evidence from Mexico," The B.E. Journal of Macroeconomics, De Gruyter, vol. 15(2), pages 509-560, July.
    7. John ARIZA & Josep Lluís RAYMOND BARA, 2020. "Technological change and employment in Brazil, Colombia and Mexico: Which workers are most affected?," International Labour Review, International Labour Organization, vol. 159(2), pages 137-159, June.

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