How the wage-education profile got more convex: evidence from Mexico
How the wage-education profile got more convex: evidence from Mexico
In the 1990s, in many countries, wages became a more convex function of education: returns to college increased and returns to intermediate education declined. This paper argues that an important cause of this convexification was an exogenous increase in the demand for skilled labour: the increased demand stimulated a supply response, and the supply of intermediate-educated workers further increased the demand for college-educated workers because these two types of labour are complementary. This argument is supported by an empirical equilibrium model of savings and educational choices for Mexico, where the degree of convexification was amplified by loosening credit constraints.
Binelli, Chiara
9c592dc3-5794-423c-8532-c0f82a1c3639
Binelli, Chiara
9c592dc3-5794-423c-8532-c0f82a1c3639
Binelli, Chiara
(2015)
How the wage-education profile got more convex: evidence from Mexico.
The B E Journal of Macroeconomics.
(doi:10.1515/bejm-2014-0030).
(Submitted)
Abstract
In the 1990s, in many countries, wages became a more convex function of education: returns to college increased and returns to intermediate education declined. This paper argues that an important cause of this convexification was an exogenous increase in the demand for skilled labour: the increased demand stimulated a supply response, and the supply of intermediate-educated workers further increased the demand for college-educated workers because these two types of labour are complementary. This argument is supported by an empirical equilibrium model of savings and educational choices for Mexico, where the degree of convexification was amplified by loosening credit constraints.
This record has no associated files available for download.
More information
Submitted date: 2015
Organisations:
Economics
Identifiers
Local EPrints ID: 377961
URI: http://eprints.soton.ac.uk/id/eprint/377961
ISSN: 1935-1690
PURE UUID: fbc787e7-0f52-4991-95f3-460937aa2540
Catalogue record
Date deposited: 23 Jun 2015 13:49
Last modified: 14 Mar 2024 20:13
Export record
Altmetrics
Contributors
Author:
Chiara Binelli
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics