Comparative analysis of human capital in Nuevo Leon and Guerrero: a mincerian approach
DOI:
https://doi.org/10.24275/Keywords:
Mincer model, Inequality, Salary, Human capital, Oaxaca-Blinder decompositionAbstract
The objetive of this study is to estimated the returns to education and work experience in two regions of Mexico with contrasting levels of development: Nuevo Leon and Guerero. To that end, the Mincer equation and the Oaxaca Blinder decomposition are applied using data from the 2022 ENIGH. The Mincer model results indicate that, at the national level, each additional year of schooling increases household income by 7.3%. In Guerrero, the return to education reaches 10.2%, while in Nuevo Leon it stands at 7.32%. The Oaxaca Blinder decomposition reveals that the primary source of wage disparity between the two states is the educational attainment of the household head. In Guerrero, the coefficients associated with education are negative, reflecting a precarious labor market, whereas in Nuevo Leon they are positive and statistically significant. These findings highlight the existence of structural barriers that limit the benefits of human capital in highly marginalized contexts.
JEL Classification: O11, H74, C33.
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