Abstract

MORENO TREVINO, Jorge Omar  and  VALENZUELA SANCHEZ, Norma Aida. Allocation and misadjustment in the Mexican Labor Market: The role of abilities under multiple selection bias and complex sampling. Anál. econ. [online]. 2021, vol.36, n.93, pp.5-26.  Epub Nov 16, 2021. ISSN 2448-6655.  https://doi.org/10.24275/uam/azc/dcsh/ae/2021v36n93/moreno.

This paper analyzes the importance of the cognitive and physical abilities of the worker in the assignment in an occupation and the role of this potential bias in the identification of the parameters associated with wages and labor supply, the above in a context of multinomial selection and complex sample design. The determinants of the salary equation are estimated using the proposed methodology, identifying returns to education, compensation for over-education, penalties for under-education, and returns to work experience; The determinants of the labor supply are also estimated, all the above by type of occupation and by gender. The results show that cognitive skills play a fundamental role in the correct assignment of administrative jobs, and to a lesser extent, of elementary and manual jobs; on the other hand, physical abilities play an opposite role in allocation. Once the pertinent biases are controlled, the under-educated workers do not have a salary penalty in manual and elementary jobs; in contrast, in administrative jobs, there is a salary compensation in each additional year, and a penalty is received for each missing year. On the other hand, the achievement of women's schooling is being rewarded in administrative occupations, increasing the cost of staying at home and being assigned more in administrative occupations at rates like those of men.

Keywords : misadjustments; skills; labor supply; salary differences; selection bias; complex samples; I21; J24; J31.

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