Evolution Of Earnings And Rates Of Returns To Education In Mexico

Inequality in education accounts for a large share of the inequality in earnings in Mexico. But the increase in earnings inequality does not appear to reflect a worsening in the distribution of education. The cause instead appears to be skill-biased technological change facilitated by increased economic openness.

Inequality in education accounts for a large share of the inequality in earnings in Mexico. But the increase in earnings inequality does not appear to reflect a worsening in the distribution of education. The cause instead appears to be skill-biased technological change facilitated by increased economic openness.Reviewing the factors and mechanisms that have been driving inequality in earnings in Mexico, Lopez-Acevedo finds that inequality in education accounts for the largest share by far of the variation in earnings. In fact, the contribution of educational inequality to earnings inequality in Mexico ranks second in size in Latin America, after that in Brazil, and its significance has been increasing. Moreover, the income effect is always prevalent, and the distribution of education is highly significant even after controlling for changes in other relevant variables, such as age, region, economic sector, and labor market status.But the increase in earnings inequality in Mexico does not appear to be the result of a worsening in the distribution of education - although the income profile, which is related to returns to schooling, has become much steeper. This means that the shift in demand toward high-skilled labor has not been matched by an increase in supply. The probable reason: the increased economic openness in Mexico has facilitated skill-biased technological change.This paper - a product of the Poverty Reduction and Economic Management Sector Unit, and the Mexico-Colombia-Venezuela Department - is part of a larger effort in the region to reduce poverty and inequality. The author may be contacted at gacevedo@worldbank.

This annual conference is a global gathering of the world's leading scholars and practitioners. Among the attendees are participants from developing countries, think tanks, NGOs, and international institutions. These papers concern issues such as: Higher Education and International Migration in Asia: Brain Circulation; Interfaces in Higher Education: Two Sector in Sync?; Financing Higher Education: Lessons from developed economies, options for developing economies; Well-springs of Modern Economic Growth: Higher Education, Innovation and Local Economic Development; Higher Education, Innovation.

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Inequality has emerged as a key development challenge. It holds implications for economic growth and redistribution and translates into power asymmetries that can endanger human rights, create conflict, and embed social exclusion and chronic poverty. For these reasons, it underpins intense public and academic debates and has become a dominant policy concern within many countries and in all multilateral agencies. It is at the core of the 17 goals of the UN 2030 Agenda for Sustainable Development. This book contributes to this important discussion by presenting assessments of the measurement and analysis of global inequality by leading inequality scholars, aligning these to comprehensive reviews of inequality trends in five of the world's largest developing countries - Brazil, China, India, Mexico, and South Africa.

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