In the present paper we study the evolution of wage inequality in Uruguay from 1981 to 2007. To identify the main forces behind wage inequality evolution we apply the decomposition methodology proposed by Lemieux (2002). This methodology puts together the identification of the “price” effect...

This paper analyses wage differentials between public and private workers in Uruguay during the nineties. Previous empirical evidence showed the existence of a wage premium for public sector workers when comparing all public vs. private workers. Consideration of skilled and unskilled workers...