EDUCATION AND WAGES ACCORDING TO REGION, AGE AND GENDER. THE ARGENTINIAN CASE

Year 2017, Volume: 7 , 138 - 146, 08.09.2017

Alejandro Abraham Spedaletti Manuel İgnacio Clop

Abstract

This
work focuses on estimating the Mincer salary equation by segregating the labor
market according to the level of instruction, gender, experience and region in
order to explain the wage differences and therefore, the inequality. Moreover,
it is also desired to find a correlation between the economic cycle and the real
wages, tendencies for each variable and the evolution of the Gini index.

 

The
econometric model is estimated by minimum ordinary squares method due to the
database number of observations show the characteristics needed to find a
coherent and correct output. Dummy variables are used and the age is a proxy
variable for the experience. The database was obtained from the "Encuesta
Permanente de Hogares" (Permanent home statistics) gathered by argentine’s
INDEC (National Institute of statistics).

The
main econometric objective is to find a statistic significance of each variable
and their relation between the economic cycle. Besides, the economic objective
is to analyze the data and bring conclusions about the wage level for each
region, the gender gap and specially the relevance of education showed by the
levels of instruction.

As
a conclusion it was found that education is an extremely determinant factor of
salaries and income. Also it was found that between regions in Argentina there
are significant differences in wages, moving far from Buenos Aires means lower
wages. Regarding the gender gap, it is clear that females earn less, but young
females suffer a greater inequality.

Keywords

Education, inequality, gender, wages, income distribution

References

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