The Contribution of Workers, Workplaces, and Sorting to Wage Inequality in Mexico

We use a matched worker-workplace dataset comprising the near universe of formal private-sector workers in Mexico to estimate the contribution of average workplace-specific wagepremia, worker-level characteristics, and assortative matching on Mexico’s wage inequalitybetween 2004 and 2018. To this end, we regress log earnings on sets of worker and work-place fixed effects and perform a decomposition […]