Earnings Differentials in Colombia: A Study of Young and Rural Workers, 2002-2009

Catalina Franco; Johanna Ramos

doi:10.4067/S0718-88702010000200005

Authors

Catalina Franco Dirección de Estudios Económicos, Departamento Nacional de Planeación
Johanna Ramos Dirección de Estudios Económicos, Departamento Nacional de Planeación

DOI:

https://doi.org/10.4067/S0718-88702010000200005

Keywords:

Earnings differentials, time series, matching, Colombia

Abstract

This paper examines the trends and magnitude of earnings differentials among urban and rural workers, and young (18-24 years) and old (25-65 years) workers from 2002 to 2009 in Colombia. Using household surveys data and constructing cells for comparing only workers with the same characteristics, the results from time series and matching decomposition methodologies show that earnings in the groups of interest have not diverged over time. However, the earnings differentials are high at around –50 percent for rural and –40 percent for young workers, of which 14 and 19 percentage points, respectively, remain unexplained after controlling for demographic and job-related characteristics.

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Author Biographies

Catalina Franco, Dirección de Estudios Económicos, Departamento Nacional de Planeación

Dirección de Estudios Económicos, Departamento Nacional de Planeación

Johanna Ramos, Dirección de Estudios Económicos, Departamento Nacional de Planeación

Dirección de Estudios Económicos, Departamento Nacional de Planeación

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