Abstract
The wage premium between skilled and unskilled workers in Mexican maquiladoras has moved up, from 4.14 in January 1990 to 4.79 in March 2006. This 16 per cent increase in wage differentials favouring skilled workers is contrasted to a measure of relative labour supplies within a model of skill-biased technical change (SBTC). Estimating how this skill premium responds to technology (captured by either a time trend or the capital-expenditure share) and to relative labour supplies, we find support for theoretical models in which the skill premium increases in the long-run under strong technology effects. Error correction models confirm fast adjustment to long-run equilibrium, within about four months.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
