A COHORT ANALYSIS OF THE COLLEGE PREMIUM IN MEXICO
This paper provides the first empirical evidence for Mexico about relative wage differences between college-educated and high-school-educated workers across five-year age groups. Rotating panel surveys are used to implement an imperfect substitution model for similar male workers between different age groups and between the two education groups. For the period 2005-2012, the results suggest a partial elasticity of substitution of 1.7 for college- and high-school-educated workers and a partial elasticity of substitution of about 3 across age groups. Remarkably, the wage gap between younger and older workers with the same education level increased after the economic crisis of 2008.