Wage Gap in Uruguay

This study applies the extension of the Machado and Mata (2005) decomposition developed by Albrecht, van Vuuren and Vroman (2009) to analyze the gender wage gap with selection correction in Uruguay. The wage gap is increasing in the upper part of the wage distribution suggesting a glass ceiling in Uruguay. The wage gap is explained more for the differences in return to the observables characteristics than for differences in the characteristics. It is also a positive selection effect