Wage inequality in a developing country: decrease in minimum wage or increase in education returns

  • Xulia González
  • Daniel Miles
Part of the Studies in Empirical Economics book series (STUDEMP)


In this paper we analyze the increase in wage inequality observed in the Uruguayan labour market during the last decade, by studying how the changes in minimum wage and returns to education affected the wage structure. Although in most developed countries a significant proportion of the increase in wage inequality is explained by a fall in the real minimum wage, this is not the case for the Uruguayan labour market. We observe that returns to education increased significantly, which could explain the increase of wage dispersion by its effects on the upper tail of the wage distribution. To derive these conclusions we follow a parametric and nonparametric quantile regression approach.


Minimum Wage Labour Market Outcome Wage Inequality Wage Distribution Lower Tail 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2002

Authors and Affiliations

  • Xulia González
    • 1
  • Daniel Miles
    • 1
  1. 1.Departamento de Economía Aplicada, Fac. EconómicasUniversidad de Vigo. Lagoas Marcosende snPontevedraSpain

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