Volume 44, Number 174,

July-September 2013

July-September 2013

Salary Gaps in Uruguay: Gender, Segregation

and Unequal Labor Qualifications

and Unequal Labor Qualifications

Salary Differences and Segregation ( ...continuation )

With this in mind, the first salary equation was as follows (1):

(1) |

Where *lw*_{poij} is the logarithm of the hourly salary explained by a dummy variable equal to 1 if the individual *p* is a woman (0 if it is a man), *segM* is the percentage of women in occupation * o*,

Equation (1), according to Bayard *et al.* (2003), can be broken down to express the differences as an average of the logarithms of the salaries between men and women, as shown in (2):

(2) |

Where the prime in the coefficients indicates estimated values and the subscripts *m* and *h* in the variables indicate the average for women and men, respectively.

The average difference of salaries is made up of five terms. The difference *X*_{h} –*X _{m}* reflects the dissimilarities in individual characteristics. The way in which these characteristics are remunerated in the labor market is defined by the value and the sign of

Salary Differences and Skill Mismatch

This work estimates three salary equations (Badillo Amador and Vila Llados, 2005; Johansson and Katz, 2007). The first salary equation (Verdugo and Verdugo, 1989) aims to analyze whether educational imbalances with relation to the average of occupied persons can explain the salary differences among workers with similar characteristics, and as such, the same educational level:

(3) |

Where the dependent variable is the logarithm of the average hourly salary of individual *i*, *sobrecalif _{i}* is a dichotomist variable that takes on the value of 1 if employee

^{7} Analyzing salary differences by gender and controlling for segregation throughout all of these dimensions as well as other features captured by β’ can be thought of as a traditional decomposition from R. Oaxaca (1973), but in this case, the restriction that the coefficients be the same for women and men is imposed. In other words, female segregation would consequently affect both female and male salaries.

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PROBLEMAS DEL DESARROLLO. REVISTA LATINOAMERICANA DE ECONOMÍA, Volume 49, Number 194 July-September 2018 is a quarterly publication by the Universidad
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