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Labor Market Discrimination Against Indigenous Peoples in Mexico: A Decomposition Analysis of Wage Differentials Cover

Labor Market Discrimination Against Indigenous Peoples in Mexico: A Decomposition Analysis of Wage Differentials

By:   
Open Access
|Mar 2019

Figures & Tables

Figure 1

Distribution of the Logarithm of Monthly Wage by Ethnicity.

Source: Author’s calculations based on the ENIGH 2016.

Table 1

Descriptive Statistics by Ethnicity, 2016.

VariableNon-indigenous
(n = 118,744)
Indigenous
(n = 11,307)
Individual’s characteristicsMeanStd. DevMeanStd. Dev
Wage34,26145,137.1318,66822,930.52
Age38.4114.6441.5416.21
Years of schooling10.104.266.983.98
Years of experience28.3116.3234.5618.17
Hours worked42.6220.238.2121.16
PercentagePercentage
Female39.7739.09
Locality Size
    Population of fewer than 2,50035.5364.78
    Between 2,500–14,999 inhabitants13.5518.84
    Between 15,000–99,999 inhabitants13.457.81
    Population of more than 100,00037.488.57

[i] Source: Author’s calculations based on the ENIGH 2016.

Figure 2

Two-fold Oaxaca-Blinder Wage Decomposition Results.

Notes: Indigenous is the reference category. Results show Heckman Correction estimates and bootstrapped standard errors with 50 replications.

Source: Author’s calculations based on the ENIGH 2016.

Figure 3

Mexico’s Raw Ethnic Wage Gap, 2016.

Source: Author’s calculations based on the ENIGH 2016.

Table 2

Conditional and unconditional quantile wage decomposition results.

Quantileθ= .10θ= .20θ= .30θ= .40θ= .50θ= .60θ= .70θ= .80θ= .90
Raw Difference–1.33***–1.13***–0.97***–0.85***–0.75***–0.67***–0.61***–0.54***–0.47***
(0.02)      (0.02)      (0.02)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.02)      
Characteristics–0.57***–0.49***–0.45***–0.43***–0.41***–0.40***–0.39***–0.38***–0.36***
(0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      
Coefficients–0.48***–0.46***–0.44***–0.42***–0.39***–0.36***–0.32***–0.28***–0.22***
(0.02)      (0.02)      (0.02)      (0.01)      (0.01)      (0.01)      (0.01)      (0.02)      (0.02)      
Raw Difference1.41***1.16***0.96***0.83***0.72***0.65***0.58***0.52***0.50***
(0.03)      (0.03)      (0.02)      (0.02)      (0.02)      (0.01)      (0.01)      (0.01)      (0.01)      
Characteristics
  Female0.00      0.00      0.00      0.00      0.00      0.00*    0.00*    0.00*    0.00      
(0.00)      (0.00)      (0.00)      (0.00)      (0.00)      (0.00)      (0.00)      (0.00)      (0.00)      
  Years of schooling0.07**  0.09***0.13***0.14***0.15***0.15***0.16***0.17***0.20***
(0.03)      (0.02)      (0.02)      (0.02)      (0.01)      (0.01)      (0.01)      (0.01)      (0.02)      
  Experience–0.24***–0.20***–0.12***–0.07***–0.07***–0.03*    –0.02      –0.02      –0.02      
(0.04)      (0.03)      (0.02)      (0.02)      (0.02)      (0.01)      (0.01)      (0.01)      (0.01)      
  Experience squared0.38***0.29***0.18***0.11***0.09***0.05***0.03*    0.01      0.00      
(0.04)      (0.03)      (0.02)      (0.02)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      
  Occupation0.16***0.18***0.17***0.14***0.12***0.12***0.10***0.07***0.06***
(0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      
  Hours worked0.05***0.06***0.06***0.05***0.04***0.04***0.03***0.03***0.02***
(0.01)      (0.01)      (0.01)      (0.00)      (0.00)      (0.00)      (0.00)      (0.00)      (0.00)      
  Locality size0.21***0.26***0.28***0.27***0.24***0.22***0.23***0.20***0.19***
(0.02)      (0.02)      (0.02)      (0.01)      (0.01)      (0.01)      (0.02)      (0.02)      (0.02)      
  State–0.10***–0.09***–0.11***–0.08***–0.07***–0.06***–0.05***–0.03***–0.02***
(0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      
Coefficients
  Female0.03      0.01      –0.02      –0.02      –0.02      –0.03*    –0.03**  –0.04**  –0.03**  
(0.03)      (0.02)      (0.02)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      
  Years of schooling0.05      0.05      0.01      0.03      0.04      0.07*    0.09**  0.11**  0.16      
(0.07)      (0.05)      (0.04)      (0.03)      (0.03)      (0.03)      (0.03)      (0.03)      (0.04)      
  Experience–0.55**  –0.77***–0.51***–0.35***–0.33***–0.18**  –0.11      –0.06      0.00      
(0.19)      (0.14)      (0.11)      (0.08)      (0.07)      (0.07)      (0.07)      (0.07)      (0.07)      
  Experience squared0.19      0.50***0.33***0.22***0.22***0.14***0.11**  0.07*    0.05      
(0.13)      (0.09)      (0.07)      (0.05)      (0.04)      (0.04)      (0.04)      (0.04)      (0.04)      
  Occupation–0.13***–0.22***–0.23***–0.18***–0.17***–0.17***–0.15***–0.11***–0.09***
(0.03)      (0.02)      (0.02)      (0.02)      (0.01)      (0.01)      (0.01)      (0.01)      0.02      
  Hours worked0.25***–0.12**  –0.17***–0.19***–0.16***–0.18***–0.15***–0.15***–0.07**  
(0.06)      (0.05)      (0.04)      (0.03)      (0.03)      (0.03)      (0.03)      (0.03)      (0.03)      
  Locality size0.00      –0.18***–0.23***–0.25***–0.21***–0.20***–0.23***–0.20***–0.22***
(0.04)      (0.03)      (0.03)      (0.02)      (0.02)      (0.02)      (0.03)      (0.03)      (0.03)      
  State–0.64***–0.60***–0.67***–0.52***–0.49***–0.40***–0.35***–0.28***–0.23***
(0.06)      (0.05)      (0.04)      (0.03)      (0.03)      (0.03)      (0.03)      (0.03)      (0.03)      

[i] Notes: N = 105,754; * p < 0.05, ** p < 0.01, *** p < 0.001; Bootstrap standard errors with 100 replications in parenthesis.

Source: Author’s calculations based on the ENIGH 2016.

Figure 4

Quantile Decomposition of Mexico’s Ethnic Wage Gap, 2016.

Source: Author’s calculations based on the ENIGH 2016.

Figure 5

Quantile Decomposition of Mexico’s Ethnic Wage Gap by Gender, 2016.

Source: Author’s calculations based on the ENIGH 2016.

Figure 6

Decomposition Results of the Prevalence of Employment in the Informal Sector.

Source: Author’s calculations based on the ENIGH 2016.

Table 3

Decomposition Results of the Ethnic Gap in the Prevalence of Informal Employment by Gender.

Total SampleFemalesMales
Raw Difference0.32***0.28***0.37***
(0.00)      (0.01)      (0.01)      
Characteristics0.15***0.14***0.19***
(0.01)      (0.01)      (0.01)      
Coefficients0.17***0.15***0.18***
(0.01)      (0.01)      (0.01)      
Characteristics
  Female0.00***–      –      
(0.00)      –      –      
  Years of schooling0.11***0.10***0.14***
(0.00)      (0.00)      (0.01)      
  Experience–0.07***–0.07***–0.08***
(0.01)      (0.01)      (0.01)      
  Experience squared0.05***0.05***0.08***
(0.01)      (0.01)      (0.01)      
  Occupation0.02***0.03***0.00      
(0.00)      (0.00)      (0.00)      
  Hours worked0.01***0.01***0.02***
(0.00)      (0.00)      (0.00)      
  Locality size0.04***0.06***0.02**  
(0.00)      (0.01)      (0.01)      
  State–0.02***–0.03***0.00      
(0.00)      (0.00)      (0.00)      
Coefficients
  Female0.05***–      –      
(0.01)      –      –      
  Years of schooling–0.07***–0.06**  –0.12***
(0.02)      (0.02)      (0.03)      
  Experience0.09***0.10**  0.02      
(0.03)      (0.03)      (0.05)      
  Experience squared–0.06***–0.06***–0.02      
(0.01)      (0.02)      (0.03)      
  Occupation–0.06***–0.05***–0.04*    
(0.01)      (0.01)      (0.02)      
  Hours worked0.01      0.02      –0.02      
(0.01)      (0.02)      (0.02)      
  Locality size0.04***0.01      0.11***
(0.01)      (0.02)      (0.03)      
  State–0.14***–0.18***–0.04*    
(0.01)      (0.01)      (0.02)      
N130051      78402      51649      

[i] Notes: N = 76,001; * p < 0.05, ** p < 0.01, *** p < 0.001; Bootstrap standard errors with 100 replications in parenthesis.

Source: Author’s calculations based on the ENIGH 2016.

Figure A1

Structure of the Population by Socio-economic Characteristics.

Source: Author’s calculations based on the ENIGH 2016.

Figure A2

Structure of the Population by Occupational Sectors.

Source: Author’s calculations based on the ENIGH 2016.

Table A1

Two-fold Oaxaca-Blinder Wage Decomposition Results.

Total SampleFemalesMales
(1)(2)(1)(2)(1)(2)
Raw Difference0.83***0.78***0.85***1.24***0.81***0.32      
(0.01)      (0.12)      (0.02)      (0.17)      (0.02)      (0.17)      
Characteristics0.51***0.28***0.57***0.27***0.46***0.30***
(0.02)      (0.02)      (0.03)      (0.03)      (0.02)      (0.03)      
Coefficients0.38***0.49***0.33***0.91***0.41***0.04      
(0.01)      (0.12)      (0.02)      (0.17)      (0.02)      (0.17)      
Characteristics
  Female0.00      0.00      –      –      –      –      
(0.00)      (0.00)      –      –      –      –      
  Years of schooling0.14**  0.11***0.16***0.11***0.11***0.11***
(0.01)      (0.01)      (0.02)      (0.02)      (0.01)      (0.02)      
  Experience–0.11***0.00      –0.13***0.01      –0.10***0.03*    
(0.01)      (0.00)      (0.03)      (0.01)      (0.02)      (0.01)      
  Experience squared0.15***0.00      0.19***0.02**  0.13***–0.02**  
(0.01)      (0.00)      (0.02)      (0.01)      (0.02)      (0.01)      
  Occupation0.12***0.04***0.13***0.02***0.11***0.04***
(0.01)      (0.00)      (0.01)      (0.01)      (0.01)      (0.01)      
  Hours worked0.04**  0.02***0.07***0.03***0.03***0.02***
(0.00)      (0.00)      (0.01)      (0.01)      (0.00)      (0.00)      
  Locality size0.23***0.16***0.23***0.14***0.22***0.16***
(0.01)      (0.01)      (0.02)      (0.02)      (0.02)      (0.01)      
  State–0.06***–0.05***–0.08***–0.06***–0.05***–0.04***
(0.01)      (0.01)      (0.01)      (0.01)      (0.01)      (0.01)      
Coefficients
  Female–0.01      0.00      –      –      –      –      
(0.01)      (0.01)      –      –      –      –      
  Years of schooling0.08**  0.06      0.06      0.08      0.09*    –0.01      
(0.03)      (0.04)      (0.04)      (0.06)      (0.04)      (0.06)      
  Experience–0.31***–0.06      –0.26**  0.37*    –0.33***–0.51*    
(0.07)      (0.12)      (0.11)      (0.18)      (0.08)      (0.17)      
  Experience squared0.17***0.04      0.12      –0.07      0.19***0.09      
(0.04)      (0.04)      (0.06)      (0.07)      (0.05)      (0.05)      
  Occupation–0.14***–0.10***–0.18***–0.17***–0.12***–0.07***
(0.01)      (0.02)      (0.02)      (0.04)      (0.01)      (0.02)      
  Hours worked–0.07**  –0.09**  –0.07*    –0.12**  –0.09*    –0.08      
(0.02)      (0.03)      (0.03)      (0.04)      (0.04)      (0.04)      
  Locality size–0.18***–0.10***–0.17***–0.05      –0.19***–0.12***
(0.02)      (0.03)      (0.04)      (0.05)      (0.03)      (0.03)      
  State–0.43***–0.37***–0.50***–0.44***–0.38***–0.32***
(0.03)      (0.03)      (0.04)      (0.06)      (0.03)      (0.04)      
  With Heckman CorrectionN      Y      N      Y      N      Y      
N105,754      101,168      43,639      41,552      62,115      59,616      

[i] Notes: * p < 0.05, ** p < 0.01, *** p<0.001; Bootstrap standard errors with 100 replications in parenthesis.

Source: Author’s calculations based on the ENIGH 2016.

Language: English
Page range: 12 - 27
Published on: Mar 1, 2019
Published by: Stockholm University Press
In partnership with: Paradigm Publishing Services

© 2019 Ana Canedo, published by Stockholm University Press
This work is licensed under the Creative Commons Attribution 4.0 License.