This paper presents empirical evidence on the existence of wage discrimination concerning indigenous population in Chile in the period 1996-2006, using data from the Casen survey. The results show that wage discrimination has remained stable during the last ten years (12%). Using bootstrapping techniques it is possible to construct a confidence interval for the wage discrimination measure, which allows to conclude that it is statistically significant. On the other hand, in the same period, the wage gap dropped from 32.5% to 24.9%, this decline is basically explained by the leveling of human capital endowment between the two groups. The estimations are sensitive to the correction for selection bias, which points out the relevance of including this variable in the wage gap decomposition.
ASJC Scopus subject areas
- Economics and Econometrics