Volume 44, Number 174,
July-September 2013
Salary Gaps in Uruguay: Gender, Segregation
and Unequal Labor Qualifications
Alma Espino
Salary Differences and Skill Mismatch ( ...continuation )

First, a salary equation was estimated to examine the hypothesis that all years of formal education have the same rate of return, which would occur if the return were only dependent on the labor supply, as assumed by the theory of human capital (Becker, 1962 and 1975; Schultz, 1961).


Then a salary equation similar to the one proposed by Duncan and Hoffman (1981) was estimated to examine whether the return on education depends only on education required for the job, as argued by the job skills theory (Thurow, 1975).


Where total years of formal education achieved by employee i (edui) are broken down into years of over-education (añossobrei) or years of under-education (añosinfrai) (Hartog 1997, 2000).


The information analyzed here is from 2010, and was taken from the Continuous Household Survey (ech) administered by the National Statistics Institute (ine).8 Table 1 presents the average values for men and women in the age range of 24-65 years, currently employed and reporting job income in the category of salaried employees (public and private) for each of the variables used in the analysis.

8 Before 2006, information was only available for places with 5,000 or more residents.

Published in Mexico, 2012-2017 © D.R. Universidad Nacional Autónoma de México (UNAM).
PROBLEMAS DEL DESARROLLO. REVISTA LATINOAMERICANA DE ECONOMÍA, Volume 49, Number 193, April-June 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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