The distributive effects of education: an unconditional quantile regression approach

Alejo, Javier and Gabrielli, Florencia and Sosa Escudero, Walter (2011): The distributive effects of education: an unconditional quantile regression approach. Published in: ANALES DE LA ASOCIACION ARGENTINA DE ECONOMIA POLITICA No. 46 (2011): pp. 1-24.

Abstract

We use recent unconditional quantile regression methods (UQR) to study the distributive eects of education in Argentina. Standard methods usually focus on mean effects, or explore distributive effects by either making stringent modeling assumptions, and/or through counterfactual decompositions that require several temporal observations. An empirical case shows the exibility and usefulness of UQR methods. Our application for the case of Argentina shows that education contributed positively to increased inequality in Argentina, mostly due to the effect of strongly heterogeneous effects of education on earnings.

• Item Type: MPRA Paper
• Language: English
• Keywords: unconditional quantile regression, income inequality, education, Argentina
• Subjects: D - Microeconomics > D3 - Distribution; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I31 - General Welfare, Well-Being; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables

References

Alejo, J. (2006): "Desigualdad salarial en el gran Buenos Aires: una aplicacion de regresion por cuantiles en microdescomposiciones," Documento de Trabajo, CEDLAS, UNLP, Argentina., (36).

Angrist, J., and J.-S. Pischke (2008): Mostly Harmless Econometrics:An Empiricist's Companion. Princeton University Press, 1 edition edn.

Bourguignon, F., N. Lustig, and F. Ferreira (2004): The Microeconomics of Income Distribution Dynamics. Oxford University Press, Washington.

Buchinsky, M. (1994): "Changes in the U.S. Wage Structure 1963-1987: Application of Quantile Regression," Econometrica, 62(2), 405-458.

Bustelo, M. (2004): "Caracterización de los Cambios en la Desigualdad y la Pobreza en Argentina Haciendo Uso de Ténicas de Descomposiciones Microeconométricas," CEDLAS, Documento de Trabajo, (13).

Card, D. (2001): "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, 69, 1127-1160.

Firpo, S., N. Fortin, and T. Lemieux (2009): "Unconditional Quantile Regressions," Econometrica, 77(3), 953-973. (2011): Handbook of Labor Economicschap. Decomposition Method in Economics. Elsevier, in press.

Gasparini, L., and G. Cruces (2009): "Desigualdad En Argentina: Una Revision De La Evidencia Emprica," Desarrollo Economico, 1.

Gasparini, L., M. Marchionni, and W. Sosa Escudero (2001): Distribucion del Ingreso en la Argentina: Perspectivas y Efectos sobre el Bienestar. Premio Fulvio S. Pagani, Fundacin Arcor.

Hungerford, T., and G. Solon (1987): "Sheepskin eects in the returns to education," The Review of Economics and Statistics, 69(1), 175-177.

Koenker, R. (2005): Quantile Regression. Cambridge University Press, Cambridge.

Koenker, R., and B. G. (1978): "Regression Quantiles," Econometrica, 46(1), 33-50.

Martins, P., and P. Pereira (2004): "Does Education Reduce Wage Inequality? Quantile Regression Evidence from 16 Countries," Labour Economics, 11(3), 355-371.

Mata, J., and J. Machado (2005): "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, 20(445-465).

Melly, B. (2005): "Decomposition of Dierences in Distribution Using Quanitle Regressions," Labour Economics, 12, 577-90.

Powell, D. (2011): "Unconditional Quantile Regression for Exogenous or Endogenous Treatment Variables," Labor and Population working paper series, (WR-824).

Sosa Escudero, W., and S. Petralia (2011, forthcoming): Comparartive Growth and Development: Brazil and Argentinachap. I Can Hear the Grass Grow: The Anatomy of Distributive Changes in Argentina. Edward Elgar Publishers.