Industry wage premia in Argentina
DOI:
https://doi.org/10.24215/18521649e024Keywords:
premium wage, sector, production, decompositionAbstract
Wage heterogeneity in the Argentine labor market has been broadly analyzed. Differences in job characteristics between workers account for a large proportion of both wage differentials and household income inequality. This is a consequence of sizable productive heterogeneity in the Argentine economy but also of considerable differences in attributes of its labor force. This paper uses traditional decomposition techniques to quantify the contribution of each source of variation in different levels of productive sector disaggregation. We show that the specific wage premium of each sector depends greatly on the observable attributes of its labor force, but substantial variation remains after controlling for such attributes. Finally, we offer some hypotheses on the determinants of wage differentials between Argentine productive sectors.
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