Redistributive policies and returns to schooling.The case of Uruguay during 2005-2015

During the past decade, new redistribution policies and a substantial reduction of wage inequality took place in Uruguay. In particular, two important labor market reforms were implemented during those years: substantial increases of minimum wages and a progressive tax reform. This work addresses ho...

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Detalhes bibliográficos
Autor: Yapor García, Mijail
Tipo de documento: dissertação
Estado:Versión aceptada para publicación
Data de publicação:2018
País:Uruguay
Recursos:Universidad de la República
Repositório:COLIBRI
Idioma:inglês
OAI Identifier:oai:colibri.udelar.edu.uy:20.500.12008/28370
Acesso em linha:https://hdl.handle.net/20.500.12008/28370
Access Level:Acceso aberto
Palavra-chave:Desigualdad salarial
Retornos a la educación
Regresiones RIF
Políticas redistributivas
Descrição
Resumo:During the past decade, new redistribution policies and a substantial reduction of wage inequality took place in Uruguay. In particular, two important labor market reforms were implemented during those years: substantial increases of minimum wages and a progressive tax reform. This work addresses how these policies affected returns to schooling and analyzes their potential impacts on wage inequality. Firstly, we use bootstrapping techniques to test the difference between before- and after-tax returns. Secondly, we apply decomposition methods based on the RIF-regression approach to study the determinants of the evolution of wages. We find evidence that before- and after-taxreturns to schooling evolved in a parallel manner. Also, we find that the most educated workers were able to, at least partially, mitigate the redistributive effect of the tax reform.