Socio-demographic Drivers of Labor Earnings Disparities across Income Quantiles in Chile and Mexico

This paper offers a comprehensive snapshot of the valuation of workers’ socio-demographic characteristics within the Chilean and Mexican labor markets, focusing on variations across different income quantiles over time. Utilizing nationally and regionally representative household survey data, we employ quantile regression techniques to estimate Mincerian wage equations. Our analysis reveals that in both countries, male workers, individuals possessing at least some college education, wage earners, and residents of more populous areas consistently earn more than their counterparts who are female, less educated, self-employed, and living in less populated areas. Notably, the degree of these earnings disparities significantly varies across income quantiles and evolves over time. Considering the historical emphasis on market-driven rather than redistributive policies in these countries, our findings suggest the need for policy measures specifically designed to address each critical determinant of earnings across diverse income quantiles.