Educational Upgrading and Returns to Skills in Latin America : Evidence from a Supply-Demand Framework, 1990–2010
It has been argued that a factor behind the decline in income inequality in Latin America in the 2000s was the educational upgrading of its labor force. Between 1990 and 2010, the proportion of the labor force in the region with at least secondary...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120103093606 http://hdl.handle.net/10986/3696 |
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okr-10986-3696 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
ADVANCED COUNTRIES AGE GROUPS AGGREGATE INCOME AGGREGATE UNEMPLOYMENT AGGREGATE UNEMPLOYMENT RATE AGRICULTURE ANNUAL % CHANGE AVERAGE RATE AVERAGE WAGE BASE YEAR BUSINESS CYCLE CAPITAL ACCUMULATION COLLECTIVE BARGAINING COLLEGE EDUCATION COLLEGE GRADUATES COMPARATIVE ADVANTAGE CONSTANT ELASTICITY COUNTRY EFFECTS COUNTRY EXPERIENCES COUNTRY LEVEL COUNTRY REGRESSIONS COUNTRY-SPECIFIC TRENDS CRISES DATA SET DEMAND CURVE DEMAND-SIDE DEPENDENT VARIABLE DEVELOPED COUNTRIES DEVELOPED ECONOMIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTIONAL CHANGES DISTRIBUTIONAL EFFECTS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIC SECTORS ECONOMIC STRUCTURES ECONOMIC STUDIES ECONOMICS EDUCATED WORKFORCE EDUCATION SECTOR EDUCATIONAL ATTAINMENT EDUCATIONAL INSTITUTIONS EDUCATIONAL LEVEL EDUCATIONAL QUALITY ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EMPLOYMENT EFFECTS EMPLOYMENT PATTERNS EQUALIZING IMPACT EXOGENOUS CHANGES EXOGENOUS FACTORS EXPLANATORY POWER EXPORTS EXTERNAL SHOCKS FACTOR DEMAND FACTOR ENDOWMENTS FINANCIAL SECTOR FISCAL POLICY FUTURE RESEARCH GDP GDP PER CAPITA GINI COEFFICIENT HIGH SCHOOL DROPOUTS HIGH SCHOOL GRADUATES HIGH-SCHOOL DROPOUTS HOUSEHOLD INCOME HOUSEHOLD SURVEY HUMAN CAPITAL HUMAN DEVELOPMENT INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INCOME REDISTRIBUTION INCOME SOURCE INCREASING INEQUALITY INCREASING RATE INSURANCE INTERNATIONAL TRADE LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKET INSTITUTIONS LABOR MARKET POLICY LABOR MARKET REFORM LABOR MARKETS LABOR POLICY LABOR PRODUCTIVITY LABOR REGULATIONS LABOR RELATIONS LABOR SUPPLIES LABOR SUPPLY LEARNING LEVELS OF EDUCATION LIQUIDITY LITERATURE LONG-TERM GROWTH MANUFACTURING INDUSTRIES MARGINAL PRODUCT MARKET EQUILIBRIUM MEAN VALUE MINIMUM WAGE MINIMUM WAGES MOTIVATION NATURAL RESOURCES NEGATIVE RELATIONSHIP OBSERVED CHANGE OBSERVED CHANGES OBSERVED EVOLUTION OBSERVED INCREASE OPEN ACCESS PAPERS PER CAPITA INCOME PERFECT COMPETITION POLICY CHANGES POLICY DISCUSSIONS POLICY INTERVENTIONS POLICY RESEARCH POSITIVE CORRELATION POSITIVE RELATIONSHIP POSTGRADUATE EDUCATION POVERTY REDUCTION PRESENT EVIDENCE PREVIOUS SECTION PRIMARY EDUCATION PRIMARY SCHOOL PRIMARY SCHOOL ENROLMENT PRIME AGE PRIVATE TRANSFERS PRODUCTION FUNCTION PRODUCTIVE ASSETS PUBLIC POLICIES REAL EXCHANGE RATE REDISTRIBUTIVE POLICIES REGIONAL LEVEL REGRESSION ANALYSIS RELATIVE DEMAND RELATIVE IMPORTANCE RELATIVE LABOR RELATIVE LABOR DEMAND RELATIVE PRICES RELATIVE SUPPLY RELATIVE WAGES RESEARCH AGENDA RISING DEMAND RISING WAGE INEQUALITY SALARIED WORKERS SECONDARY EDUCATION SECONDARY SCHOOL GRADUATES SECONDARY SCHOOLING SECTOR EMPLOYMENT SERIAL CORRELATION SERVICE SECTORS SIGNIFICANT CORRELATION SIGNIFICANT EFFECT SIGNIFICANT RELATIONSHIP SKILL GROUP SKILL GROUPS SKILL LEVEL SKILL LEVELS SKILL PREMIUM SKILL PREMIUMS SKILL UPGRADING SKILL WORKERS SKILLED EMPLOYMENT SKILLED WAGE SKILLED WAGE PREMIUM SKILLED WORKERS STATE-OWNED ENTERPRISES TECHNICAL SKILLS TERTIARY EDUCATION TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE LIBERALIZATION TRADE REFORMS UNEMPLOYMENT UNEMPLOYMENT LEVEL UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNSKILLED LABOR UNSKILLED WORKERS WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE GAP WAGE INEQUALITY WAGE LEVEL WAGE LEVELS WAGE PREMIUM WAGE PREMIUMS WEALTH WORKER WORKERS |
| spellingShingle |
ADVANCED COUNTRIES AGE GROUPS AGGREGATE INCOME AGGREGATE UNEMPLOYMENT AGGREGATE UNEMPLOYMENT RATE AGRICULTURE ANNUAL % CHANGE AVERAGE RATE AVERAGE WAGE BASE YEAR BUSINESS CYCLE CAPITAL ACCUMULATION COLLECTIVE BARGAINING COLLEGE EDUCATION COLLEGE GRADUATES COMPARATIVE ADVANTAGE CONSTANT ELASTICITY COUNTRY EFFECTS COUNTRY EXPERIENCES COUNTRY LEVEL COUNTRY REGRESSIONS COUNTRY-SPECIFIC TRENDS CRISES DATA SET DEMAND CURVE DEMAND-SIDE DEPENDENT VARIABLE DEVELOPED COUNTRIES DEVELOPED ECONOMIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTIONAL CHANGES DISTRIBUTIONAL EFFECTS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIC SECTORS ECONOMIC STRUCTURES ECONOMIC STUDIES ECONOMICS EDUCATED WORKFORCE EDUCATION SECTOR EDUCATIONAL ATTAINMENT EDUCATIONAL INSTITUTIONS EDUCATIONAL LEVEL EDUCATIONAL QUALITY ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EMPLOYMENT EFFECTS EMPLOYMENT PATTERNS EQUALIZING IMPACT EXOGENOUS CHANGES EXOGENOUS FACTORS EXPLANATORY POWER EXPORTS EXTERNAL SHOCKS FACTOR DEMAND FACTOR ENDOWMENTS FINANCIAL SECTOR FISCAL POLICY FUTURE RESEARCH GDP GDP PER CAPITA GINI COEFFICIENT HIGH SCHOOL DROPOUTS HIGH SCHOOL GRADUATES HIGH-SCHOOL DROPOUTS HOUSEHOLD INCOME HOUSEHOLD SURVEY HUMAN CAPITAL HUMAN DEVELOPMENT INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INCOME REDISTRIBUTION INCOME SOURCE INCREASING INEQUALITY INCREASING RATE INSURANCE INTERNATIONAL TRADE LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKET INSTITUTIONS LABOR MARKET POLICY LABOR MARKET REFORM LABOR MARKETS LABOR POLICY LABOR PRODUCTIVITY LABOR REGULATIONS LABOR RELATIONS LABOR SUPPLIES LABOR SUPPLY LEARNING LEVELS OF EDUCATION LIQUIDITY LITERATURE LONG-TERM GROWTH MANUFACTURING INDUSTRIES MARGINAL PRODUCT MARKET EQUILIBRIUM MEAN VALUE MINIMUM WAGE MINIMUM WAGES MOTIVATION NATURAL RESOURCES NEGATIVE RELATIONSHIP OBSERVED CHANGE OBSERVED CHANGES OBSERVED EVOLUTION OBSERVED INCREASE OPEN ACCESS PAPERS PER CAPITA INCOME PERFECT COMPETITION POLICY CHANGES POLICY DISCUSSIONS POLICY INTERVENTIONS POLICY RESEARCH POSITIVE CORRELATION POSITIVE RELATIONSHIP POSTGRADUATE EDUCATION POVERTY REDUCTION PRESENT EVIDENCE PREVIOUS SECTION PRIMARY EDUCATION PRIMARY SCHOOL PRIMARY SCHOOL ENROLMENT PRIME AGE PRIVATE TRANSFERS PRODUCTION FUNCTION PRODUCTIVE ASSETS PUBLIC POLICIES REAL EXCHANGE RATE REDISTRIBUTIVE POLICIES REGIONAL LEVEL REGRESSION ANALYSIS RELATIVE DEMAND RELATIVE IMPORTANCE RELATIVE LABOR RELATIVE LABOR DEMAND RELATIVE PRICES RELATIVE SUPPLY RELATIVE WAGES RESEARCH AGENDA RISING DEMAND RISING WAGE INEQUALITY SALARIED WORKERS SECONDARY EDUCATION SECONDARY SCHOOL GRADUATES SECONDARY SCHOOLING SECTOR EMPLOYMENT SERIAL CORRELATION SERVICE SECTORS SIGNIFICANT CORRELATION SIGNIFICANT EFFECT SIGNIFICANT RELATIONSHIP SKILL GROUP SKILL GROUPS SKILL LEVEL SKILL LEVELS SKILL PREMIUM SKILL PREMIUMS SKILL UPGRADING SKILL WORKERS SKILLED EMPLOYMENT SKILLED WAGE SKILLED WAGE PREMIUM SKILLED WORKERS STATE-OWNED ENTERPRISES TECHNICAL SKILLS TERTIARY EDUCATION TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE LIBERALIZATION TRADE REFORMS UNEMPLOYMENT UNEMPLOYMENT LEVEL UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNSKILLED LABOR UNSKILLED WORKERS WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE GAP WAGE INEQUALITY WAGE LEVEL WAGE LEVELS WAGE PREMIUM WAGE PREMIUMS WEALTH WORKER WORKERS Gasparini, Leonardo Galiani, Sebastian Cruces, Guillermo Acosta, Pablo Educational Upgrading and Returns to Skills in Latin America : Evidence from a Supply-Demand Framework, 1990–2010 |
| geographic_facet |
Latin America & Caribbean Caribbean Latin America |
| relation |
Policy Research working paper ; no. WPS 5921 |
| description |
It has been argued that a factor behind
the decline in income inequality in Latin America in the
2000s was the educational upgrading of its labor force.
Between 1990 and 2010, the proportion of the labor force in
the region with at least secondary education increased from
40 to 60 percent. Concurrently, returns to secondary
education completion fell throughout the past two decades,
while the 2000s saw a reversal in the increase in the
returns to tertiary education experienced in the 1990s. This
paper studies the evolution of wage differentials and the
trends in the supply of workers by educational level for 16
Latin American countries between 1990 and 2000. The analysis
estimates the relative contribution of supply and demand
factors behind recent trends in skill premia for tertiary
and secondary educated workers. Supply-side factors seem to
have limited explanatory power relative to demand-side
factors, and are only relevant to explain part of the fall
in wage premia for high-school graduates. Although there is
significant heterogeneity in individual country experiences,
on average the trend reversal in labor demand in the 2000s
can be partially attributed to the recent boom in commodity
prices that could favor the unskilled (non-tertiary
educated) workforce, although employment patterns by sector
suggest that other within-sector forces are also at play,
such as technological diffusion or skill mismatches that may
reduce the labor productivity of highly-educated workers. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Gasparini, Leonardo Galiani, Sebastian Cruces, Guillermo Acosta, Pablo |
| author_facet |
Gasparini, Leonardo Galiani, Sebastian Cruces, Guillermo Acosta, Pablo |
| author_sort |
Gasparini, Leonardo |
| title |
Educational Upgrading and Returns to Skills in Latin America : Evidence from a Supply-Demand Framework, 1990–2010 |
| title_short |
Educational Upgrading and Returns to Skills in Latin America : Evidence from a Supply-Demand Framework, 1990–2010 |
| title_full |
Educational Upgrading and Returns to Skills in Latin America : Evidence from a Supply-Demand Framework, 1990–2010 |
| title_fullStr |
Educational Upgrading and Returns to Skills in Latin America : Evidence from a Supply-Demand Framework, 1990–2010 |
| title_full_unstemmed |
Educational Upgrading and Returns to Skills in Latin America : Evidence from a Supply-Demand Framework, 1990–2010 |
| title_sort |
educational upgrading and returns to skills in latin america : evidence from a supply-demand framework, 1990–2010 |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120103093606 http://hdl.handle.net/10986/3696 |
| _version_ |
1764387860370161664 |
| spelling |
okr-10986-36962021-04-23T14:02:12Z Educational Upgrading and Returns to Skills in Latin America : Evidence from a Supply-Demand Framework, 1990–2010 Gasparini, Leonardo Galiani, Sebastian Cruces, Guillermo Acosta, Pablo ADVANCED COUNTRIES AGE GROUPS AGGREGATE INCOME AGGREGATE UNEMPLOYMENT AGGREGATE UNEMPLOYMENT RATE AGRICULTURE ANNUAL % CHANGE AVERAGE RATE AVERAGE WAGE BASE YEAR BUSINESS CYCLE CAPITAL ACCUMULATION COLLECTIVE BARGAINING COLLEGE EDUCATION COLLEGE GRADUATES COMPARATIVE ADVANTAGE CONSTANT ELASTICITY COUNTRY EFFECTS COUNTRY EXPERIENCES COUNTRY LEVEL COUNTRY REGRESSIONS COUNTRY-SPECIFIC TRENDS CRISES DATA SET DEMAND CURVE DEMAND-SIDE DEPENDENT VARIABLE DEVELOPED COUNTRIES DEVELOPED ECONOMIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTIONAL CHANGES DISTRIBUTIONAL EFFECTS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIC SECTORS ECONOMIC STRUCTURES ECONOMIC STUDIES ECONOMICS EDUCATED WORKFORCE EDUCATION SECTOR EDUCATIONAL ATTAINMENT EDUCATIONAL INSTITUTIONS EDUCATIONAL LEVEL EDUCATIONAL QUALITY ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EMPLOYMENT EFFECTS EMPLOYMENT PATTERNS EQUALIZING IMPACT EXOGENOUS CHANGES EXOGENOUS FACTORS EXPLANATORY POWER EXPORTS EXTERNAL SHOCKS FACTOR DEMAND FACTOR ENDOWMENTS FINANCIAL SECTOR FISCAL POLICY FUTURE RESEARCH GDP GDP PER CAPITA GINI COEFFICIENT HIGH SCHOOL DROPOUTS HIGH SCHOOL GRADUATES HIGH-SCHOOL DROPOUTS HOUSEHOLD INCOME HOUSEHOLD SURVEY HUMAN CAPITAL HUMAN DEVELOPMENT INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INCOME REDISTRIBUTION INCOME SOURCE INCREASING INEQUALITY INCREASING RATE INSURANCE INTERNATIONAL TRADE LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKET INSTITUTIONS LABOR MARKET POLICY LABOR MARKET REFORM LABOR MARKETS LABOR POLICY LABOR PRODUCTIVITY LABOR REGULATIONS LABOR RELATIONS LABOR SUPPLIES LABOR SUPPLY LEARNING LEVELS OF EDUCATION LIQUIDITY LITERATURE LONG-TERM GROWTH MANUFACTURING INDUSTRIES MARGINAL PRODUCT MARKET EQUILIBRIUM MEAN VALUE MINIMUM WAGE MINIMUM WAGES MOTIVATION NATURAL RESOURCES NEGATIVE RELATIONSHIP OBSERVED CHANGE OBSERVED CHANGES OBSERVED EVOLUTION OBSERVED INCREASE OPEN ACCESS PAPERS PER CAPITA INCOME PERFECT COMPETITION POLICY CHANGES POLICY DISCUSSIONS POLICY INTERVENTIONS POLICY RESEARCH POSITIVE CORRELATION POSITIVE RELATIONSHIP POSTGRADUATE EDUCATION POVERTY REDUCTION PRESENT EVIDENCE PREVIOUS SECTION PRIMARY EDUCATION PRIMARY SCHOOL PRIMARY SCHOOL ENROLMENT PRIME AGE PRIVATE TRANSFERS PRODUCTION FUNCTION PRODUCTIVE ASSETS PUBLIC POLICIES REAL EXCHANGE RATE REDISTRIBUTIVE POLICIES REGIONAL LEVEL REGRESSION ANALYSIS RELATIVE DEMAND RELATIVE IMPORTANCE RELATIVE LABOR RELATIVE LABOR DEMAND RELATIVE PRICES RELATIVE SUPPLY RELATIVE WAGES RESEARCH AGENDA RISING DEMAND RISING WAGE INEQUALITY SALARIED WORKERS SECONDARY EDUCATION SECONDARY SCHOOL GRADUATES SECONDARY SCHOOLING SECTOR EMPLOYMENT SERIAL CORRELATION SERVICE SECTORS SIGNIFICANT CORRELATION SIGNIFICANT EFFECT SIGNIFICANT RELATIONSHIP SKILL GROUP SKILL GROUPS SKILL LEVEL SKILL LEVELS SKILL PREMIUM SKILL PREMIUMS SKILL UPGRADING SKILL WORKERS SKILLED EMPLOYMENT SKILLED WAGE SKILLED WAGE PREMIUM SKILLED WORKERS STATE-OWNED ENTERPRISES TECHNICAL SKILLS TERTIARY EDUCATION TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE LIBERALIZATION TRADE REFORMS UNEMPLOYMENT UNEMPLOYMENT LEVEL UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNSKILLED LABOR UNSKILLED WORKERS WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE GAP WAGE INEQUALITY WAGE LEVEL WAGE LEVELS WAGE PREMIUM WAGE PREMIUMS WEALTH WORKER WORKERS It has been argued that a factor behind the decline in income inequality in Latin America in the 2000s was the educational upgrading of its labor force. Between 1990 and 2010, the proportion of the labor force in the region with at least secondary education increased from 40 to 60 percent. Concurrently, returns to secondary education completion fell throughout the past two decades, while the 2000s saw a reversal in the increase in the returns to tertiary education experienced in the 1990s. This paper studies the evolution of wage differentials and the trends in the supply of workers by educational level for 16 Latin American countries between 1990 and 2000. The analysis estimates the relative contribution of supply and demand factors behind recent trends in skill premia for tertiary and secondary educated workers. Supply-side factors seem to have limited explanatory power relative to demand-side factors, and are only relevant to explain part of the fall in wage premia for high-school graduates. Although there is significant heterogeneity in individual country experiences, on average the trend reversal in labor demand in the 2000s can be partially attributed to the recent boom in commodity prices that could favor the unskilled (non-tertiary educated) workforce, although employment patterns by sector suggest that other within-sector forces are also at play, such as technological diffusion or skill mismatches that may reduce the labor productivity of highly-educated workers. 2012-03-19T18:07:01Z 2012-03-19T18:07:01Z 2011-12-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120103093606 http://hdl.handle.net/10986/3696 English Policy Research working paper ; no. WPS 5921 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Caribbean Latin America |