Abstract

This paper compares the influence of gender and ethnicity on wage discrimination in Guatemala using the 2000 Living Standards Measurement Survey. The sample of employees is divided into six ethnic-gender groups: males and females in three ethnic groups (i.e., non-indigenous, major and minor ethnic groups). Normalized regressions are used to estimate wage structures for each ethnic gender group including the inverse of Mill's ratio as a regressor to correct for potential selectivity. Then, the contribution of gender and ethnic discrimination on wage differentials is examined. Findings indicate that, compared to ethnic discrimination, gender discrimination explains a more significant percentage of wage differentials between relevant groups. Additionally, results indicate that forms of wage discrimination differ across ethnic-gender groups.

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