Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/274105 
Year of Publication: 
2022
Series/Report no.: 
Documento de Trabajo No. 293
Publisher: 
Universidad Nacional de La Plata, Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS), La Plata
Abstract: 
The 'paradox of progress' is an empirical regularity that associates more education with larger income inequality. Two driving and competing factors behind this phenomenon are the convexity of the 'Mincer equation' (that links wages and education) and the heterogeneity in its returns, as captured by quantile regressions. We propose a joint least-squares and quantile regression statistical framework to derive a decomposition in order to evaluate the relative contribution of each explanation. The estimators are based on the 'functional derivative' approach. We apply the proposed decomposition strategy to the case of Argentina 1992 to 2015.
Subjects: 
paradox of progress
quantile regression
inequality
returns to education
Argentina
JEL: 
J31
C21
I24
J46
O54
Document Type: 
Working Paper

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