Occupational Attainment and Gender Earnings Differentials in Mexico

Women earned about 20.8% less than men in Mexico in 1987, a difference that increased to 22.0% by 1993. Using 1987–93 data from Mexico's National Urban Employment Survey, the authors study the role of occupational attainment in this wage differential. Most of the 1987–93 increase in the gender log monthly earnings gap, they find, can be explained by relative chnges in human capital endowments; wage coefficient changes would have slightly reduced the gap, all else equal. The increasing male-female earnings differential was tempered by a substantial decline in gender differences in occupational attainment from 1987 to 1993. Most of the male-female differences in earnings in both 1987 and 1993 can be explained by differences in rewards to individual endowments rather than gender differences in endowments.