Does Education Reduce Wage Inequality? A Quantile Regression Analysis in Argentina: 2005-2015
de Marcos, Ines
This study estimates returns to education in Argentina for the 2005-2015 period. In addition to OLS earning functions, I estimate the returns using quantile regression analysis to observe differences in the returns across the income distribution. The results indicate that modeling on average (i.e. OLS modeling) misses important features related to the income structure. Quantile regression (QR) analysis reveals that the effect of education is not constant across the conditional income distribution; rather investments are more profitable at the top of the income distribution. The implication is that education investments may increase inequality.
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