The Premium for Skills: Evidence from Mexico

Michael Cragg & Mario Epeaum
"During the 1987-1993 period average real urban full time wages and employment in Mexico grew 30 and 22 percent respectively. After controlling for the changing labor force quality, all education-experience skill classes have experienced significant employment and real wage growth. This growth was accompanied by a large increase in wage dispersion within and across skill classes. The relative wage patterns for Mexico mimic those of developed countries: the premium for skills is rising."
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