Skill Premium, Labor Supply and Changes in the Structure of Wages in Latin America


  • IDB Publications (Working Papers)


  • Earnings inequality declined rapidly in Argentina, Brazil and Chile during the 2000s. A reduction in the experience premium is a fundamental driver of declines in upper-tail (90/50) inequality, while a decline in the education premium is the primary determinant of the evolution of lower-tail (50/10) inequality. Relative labor supply is important for explaining changes in the skill premiums. Relative demand trends favored high-skilled workers during the 1990s, shifting in favor of low-skilled workers during the 2000s. Changes in the minimum wage, and more importantly, commodity-led terms of trade improvements are key factors behind these relative skill demand trends.

fecha de publicación

  • 2017-04

Líneas de investigación

  • Labor Supply
  • Minimun Wage
  • Unemployment
  • Wage Gap


  • 8219