Volume 44, Number 174,
July-September 2013
Salary Gaps in Uruguay: Gender, Segregation
and Unequal Labor Qualifications
Alma Espino
Gender, Segregation and Mismatch

In order to research to what extent skill mismatch has an effect on the gender salary gap, both the mismatch variables as well as education and gender segregation were taken into account. Five equations were used for this purpose. The first evaluates the impact of education measured in years. The second introduces the variables that correspond to the proportion of over (over) and under-qualified (under) employees, respectively (Verdugo and Verdugo, 1989). The third measures over and under-qualification as a function of the years of education with respect to required years, and these will be called under and over-education for future references. The variables añosub (years under) and añossob (years over) are obtained by disaggregating the years of required education for each type of occupation, plus or minus the years of the required. The parameter of the subeducado (under-educated) variable should be interpreted as the salary premium for each year of education that separates years required from the years an individual as. The parameter sobreeducado (over-educated) should be interpreted as the fall in returns on education for each year of over-education. For equations (3’) and (5’), the variables of gender labor segregation are added.

Estimating salary equation (3) shows that greater education leads to greater salaries for employees, as would be expected, while gender — as has already been seen — has a strong negative effect (see Table 6). Equations (4) and (5) show that in 2010, years of under-education had a positive rate of return (7%), although it was below that of having the years required for the position (12%). Years of over-education had a negative return rate (5%). These results are consistent with a variety of studies, including Hartog and Oosterbeek, 1988 and Rubb, 2003, where the rates of return for the years required exceeded those that surpass these requirements, which were greater (in absolute values) than the returns for having fewer years of education than required.

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PROBLEMAS DEL DESARROLLO. REVISTA LATINOAMERICANA DE ECONOMÍA, Volume 49, Number 195 October-December 2018 is a quarterly publication by the Universidad Nacional Autónoma de México, Ciudad Universitaria, Coyoacán, CP 04510, México, D.F. by Instituto de Investigaciones Económicas, Circuito Mario de la Cueva, Ciudad Universitaria, Coyoacán,
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