Teachers’ Salaries in Latin America Earnings Gaps and Their Evolution at the turn of the 20th century Alejandra Mizala and Hugo Ñopo This paper What is this paper about? » To what extent are teachers’ earnings below (or above) those of their peers? (with a particular emphasis on : “who are their peers?”) » What role do their sociodemographic characteristics play? » How are distributed? » How these differences evolved? these differences How do we do it? Methodology » Harmonized and comparable measures for a group of countries in the region » Matching and a decomposition that compares only individuals with the same characteristics (Ñopo, 2008) » A more precise comparison of teachers and their peers This paper (2) Findings? Insights? » The extent to which teachers are underpaid is stronger than what has been previously reported in the literature. » Important role for education and part-time work. » Cross country heterogeneity. » Job schedules and job tenure (that is, larger vacations and more job stability) also play an important role (compenssting differentials) » Teachers’ underpayment is more pronounced among males, older workers, household heads, parttimers, informal workers, those who work in the private sector, and among those with complete tertiary education. » The earnings gaps decreased during last decade, especially for preschool and primary teachers, females, younger workers, and part-timers The Literature: Mixed Evidence » » » » » Psacharopoulos et al. (1996). 12 countries LA circa 1989. Mixed evidence Liang (1999). 12 countries LA circa 1995. Mixed evidence: BRA, ECU ↓; BOL, CHI, PAR = Hernani (2005). 17 countries LA circa 2000. Teachers ↑ 25% (except in Brasil) Argentina, Bolivia, Guatemala, México, Perú (fuera de Lima): teachers ↑. Chile: M: teachers ↓. F: teachers ↑. Teachers’ Salaries in Latin America. How Much are They (under or over) Paid? This paper: 9 countries (9 household surveys) Country Name Of The Survey Brazil Chile Ecuador El Salvador Honduras Mexico Nicaragua Panamá Uruguay Pesquisa Nacional por Amostra de Domicilio (PNAD) Encuesta de Caracterizacion Socioeconomica Nacional (CASEN) Encuesta de Empleo, Desempleo y Subempleo (ENEMDU) Encuesta de Hogares de Propositos Multiples (EHPM) Encuesta Permanente de Hogares de Propositos Multiples (EPHPM) Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH) Encuesta Nacional de Hogares sobre medicion de Niveles de Vida (EMNV) Encuesta de Hogares (EH) Encuesta Continua de Hogares (ECH) Year Coverage 2008 2009 2006 2009 2007 2008 2005 2007 2007 National National National National National National National National Urban Populations of interest: school teachers and other professionals and technicians Office Workers/Other Proessionals and Technicians/Teachers (non tertiary) Working Populations* Country Full Set Number of Expanded Pre-School and Elementary Teachers Secondary Teachers Other Professionals and Technicians Number of Number of Number of Expanded Expanded Expanded observations observations observations observations observations observations observations observations Brazil Chile Ecuador El Salvador Honduras Mexico Nicaragua Panamá Uruguay 157775 82905 9147 24299 26203 44373 11024 18843 25432 76800000 6021479 2404002 1961864 1910929 39900000 1652432 1269338 532842 3829 1521 522 518 688 35 377 395 592 1870619 111737 115693 41415 50867 26909 48401 24953 12238 1055 278 254 54 205 71 64 220 418 494701 31928 56255 4758 14618 50962 9292 14764 9023 19798 8568 1093 1788 2807 3323 592 1702 2841 9647079 1027836 293211 203243 188640 3015056 118800 131078 61053 All countries 400001 132452886 8477 2302832 2619 686301 42512 14685996 * Working populations in each country are identified as those earning a salary in the main occupation. Comparing apples and oranges Country Code CIUO codes for teachers* 232 233 331 332 2311 2312 2313 2321 3311 3312 3313 3321 1310 1320 1330 1340 Profesores de la enseñanza secundaria Group 2 Group 3 Profesionales Científicos e Intelectuales Brazil Mexico CIUO Codes for other professionals and technicians (all countries) Description Maestros de nivel superior de la enseñanza primaria y preescolar Maestros de nivel medio de la enseñanza primaria Maestros de nivel medio de la enseñanza preescolar Professores de nível superior na educação infantil Professores de nível superior do ensino fundamental (primeira à quarta série) Professores de nível superior no ensino fundamental de quinta à oitava série Professores do ensino médio Professores de nível médio na educação infantil Professores de nível médio no ensino fundamental Professores de nível médio no ensino profissionalizante Professores leigos no ensino fundamental Profesores de Preparatorias y equivalentes Profesores de Enseñanza Secundaria Profesores de Enseñanza Primaria Profesores de Enseñanza Preescolar Técnicos y profesionales de nivel medio * Used in Chile, Ecuador, El Salvador, Nicaragua and Uruguay Descriptive statistics: the sociodemographic profile Pre-School and Elementary Teachers Secondary Teachers All School Teachers Other Professionals and Technicians (1) (2) (3)=(1 & 2) (4) Men (Gender) 12.4% 34.3% 17.5% 55.3% Age Groups 24 and under 25 to 34 35 to 44 45 to 54 54 and over 10.5% 32.0% 30.9% 19.9% 6.7% 7.9% 29.7% 28.2% 24.9% 9.3% 9.9% 31.5% 30.3% 21.1% 7.3% 15.2% 32.4% 25.3% 17.9% 9.1% Education Level None or primary incomplete Primary complete or secondary incomplete Secondary complete or tertiary incomplete Tertiary complete 0.3% 3.2% 88.6% 7.9% 0.0% 1.3% 75.2% 23.5% 0.2% 2.8% 85.5% 11.5% 3.9% 9.9% 69.7% 16.6% Presence of Children (≤12 years) in the Household 47.4% 38.4% 45.4% 38.9% Presence of Elder (≥65 years) in the Household 14.2% 14.3% 14.2% 13.2% Head of the Household 30.4% 40.2% 32.7% 46.6% Presence of Other Household Member with Labor Income 78.8% 77.2% 78.4% 72.7% Personal Characteristics Descriptive statistics: the sociodemographic profile Pre-School and Elementary Teachers Secondary Teachers All School Teachers Other Professionals and Technicians (1) (2) (3)=(1 & 2) (4) Part time workers (≤30 hours) 45.7% 41.0% 44.6% 13.4% Formality (has social security) 87.4% 86.3% 87.1% 65.8% Works in the public sector 77.2% 70.4% 75.7% 26.2% Labor Characteristics Source: Authors’ compilations based on National Household Surveys Relative earnings: Average school teachers’ hourly earnings equal to 100 for each country. Relative Hourly Earnings (Base: Average School Teacher Earnings in each Country=100) Average Hourly Earninngs By Country Brazil Chile Ecuador El Salvador Teachers earn on Honduras average more than their peers Mexico Nicaragua Panamá Uruguay Pre-School and Elementary Teachers Secondary Teachers All School Teachers Other Professionals and Technicians (1) 91.16 (2) 129.65 (3)=(1 & 2) 100.00 (4) 131.30 90.31 93.98 90.91 101.27 99.51 96.38 96.34 91.57 96.91 136.65 121.07 118.69 88.97 101.69 101.91 119.04 114.24 104.19 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 150.42 127.45 106.53 95.17 79.77 78.37 189.44 109.51 121.81 In Nicaragua teachers earn on average slightly more than half of what their peers earn Relative earnings Relative Hourly Earnings (Base: Average School Teacher Earnings in each Country=100) Average Hourly Earninngs Personal Characteristics Men No Yes Age Groups 24 and under 25 to 34 35 to 44 45 to 54 54 and over Education Level None or primary incomplete Primary complete or secondary incomplete Secondary complete or tertiary incomplete Tertiary complete Presence of Children (<12 years) in the Household No Yes Presence of Elders (>65 years) in the Household No Yes Pre-School and Elementary Teachers Secondary Teachers All School Teachers Other Professionals and Technicians (1) 91.16 (2) 129.65 (3)=(1 & 2) 100.00 (4) 131.30 90.33 97.03 123.90 140.67 96.47 116.71 112.96 146.13 58.87 79.90 96.63 106.53 124.76 83.32 117.54 126.92 150.64 159.61 63.35 88.05 103.10 118.51 135.01 62.97 113.03 138.47 173.21 208.18 41.98 69.80 89.73 117.77 32.73 99.22 125.58 144.31 41.90 72.88 96.96 130.27 57.16 66.85 131.93 184.05 94.98 86.94 135.72 119.92 105.53 93.35 138.24 120.42 91.25 90.64 130.09 127.04 100.16 99.03 132.23 125.20 Relative earnings Relative Hourly Earnings (Base: Average School Teacher Earnings in each Country=100) Average Hourly Earninngs Personal Characteristics Head of Household No Yes Presence of Other Household Member with Labor Income No Yes Labor Characteristics Part time No Yes Formality No Yes Work in the Public Sector* No Yes Pre-School and Elementary Teachers Secondary Teachers All School Teachers Other Professionals and Technicians (1) 91.16 (2) 129.65 (3)=(1 & 2) 100.00 (4) 131.30 87.73 99.00 118.62 146.06 94.03 112.29 105.00 161.39 94.12 90.37 138.09 127.16 104.77 98.69 149.42 124.50 85.29 98.14 114.25 151.83 92.38 109.47 121.49 194.93 61.45 95.46 102.57 133.93 71.46 104.22 99.80 147.65 76.48 95.42 146.02 125.95 94.98 101.61 138.15 164.74 The Main Counterfactual Question What would the distribution of earnings for teachers be, in the case that their individual characteristics follow the distribution of the characteristics for their peers? → Matching on characteristics The Matching Algorithm Result: A sample of matched teachers and their peers with the same distribution of observable individual characteristics (but not necessarily the same distribution of earnings). This Matching Approach is… Ñopo (2008) A non-parametric alternative to B-O decompositions that has advantages in terms of: » » » » Simplicity Avoiding the estimation of earnings equations Flexibility It “contains” all possible propensity scores Identification/Correct specification Recognizing that the supports of empirical distributions of characteristics do not completely overlap (the failure to recognize this leads to an overestimation of the unexplained component of the wage gap) Information Allowing us to compute directly the distribution of the unexplained effects, not just the average Advantages/Disadvantages It is not necessary to estimate earnings equations (no functional form assumption) Better assessment. The traditional approach seems to deliver biased results when the differences in supports are not taken into account Once the matching has been done, it is straightforward to: » Explore the distribution of the unexplained wage gap » Explore not only wage gaps but also gaps for other labor market outcomes (participation, unemployment, unemployment spells, segregation) Curse of Dimensionality. The method does not allow us to use too many explanatory variables. It does not take into account selection into the labor markets The earnings gaps: school teachers vs. other professionals and technicians -10 10 30 50 70 90 110 All Teachers vis-à-vis Other Prof. and Tech. Gender +Age +Education +Kid(s) +Elder(s) CI(90%) +Hh. Head +Oth. Earner+Time Worked +Formality +Pub. Sector* CI(99%) Preschool and Primary Teachers vis-à-vis Other Prof. and Tech. -10 10 30 50 70 90 110 The earnings gaps: pre-school and elementary teachers vs. other professionals and technicians Gender +Age +Education +Kid(s) +Elder(s) CI(90%) +Hh. Head +Oth. Earner+Time Worked +Formality +Pub. Sector* CI(99%) The earnings gaps: secondary teachers vs. other professionals and technicians -10 10 30 50 70 90 110 Secondary Teachers vis-à-vis Other Prof. and Tech. Gender +Age +Education +Kid(s) +Elder(s) CI(90%) +Hh. Head +Oth. Earner+Time Worked +Formality +Pub. Sector* CI(99%) What about the differences across countries? The earnings gaps: school teachers vs. other professionals and technicians -100 -50 0 50 100 150 200 All Teachers vis-à-vis Other Prof. and Tech. Brazil Chile Ecuador El Salvador Honduras CI(90%) CI(99%) Mexico Nicaragua Panama Uruguay The earnings gaps: pre-school and elementary teachers vs. other professionals and technicians -100 -50 0 50 100 150 200 Pre-SchoolAll and Primaryvis-à-vis Teachers vis-à-vis Prof. and Tech. Teachers Other Prof.Other and Tech. Brazil Chile Ecuador El Salvador Honduras CI(90%) CI(99%) Mexico Nicaragua Panama Uruguay The earnings gaps: secondary teachers vs. other professionals and technicians -100 -50 0 50 100 150 200 Secondary Teachers vis-à-vis Other Prof. and Tech. Brazil Chile Ecuador El Salvador Honduras CI(90%) CI(99%) Mexico Nicaragua Panama Uruguay Distribution of the unexplained differences Unexplained Earnings Gap between Teachers and Other Professionals and Technicians along percentiles of the earnings distribution 150 100 50 0 -50 -100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns 200 Labor Earnings Percentile Original Gap Distribution of the unexplained differences Unexplained Earnings Gap between Teachers and Other Professionals and Technicians along percentiles of the earnings distribution 150 100 50 0 -50 -100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns 200 Labor Earnings Percentile Original Gap + Gender Distribution of the unexplained differences Unexplained Earnings Gap between Teachers and Other Professionals and Technicians along percentiles of the earnings distribution 150 100 50 0 -50 -100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns 200 Labor Earnings Percentile Original Gap + Gender + Age Distribution of the unexplained differences Unexplained Earnings Gap between Teachers and Other Professionals and Technicians along percentiles of the earnings distribution 150 100 50 0 -50 -100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns 200 Labor Earnings Percentile Original Gap + Gender + Age + Education Distribution of the unexplained differences Unexplained Earnings Gap between Teachers and Other Professionals and Technicians along percentiles of the earnings distribution 150 100 50 0 -50 -100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns 200 Labor Earnings Percentile Original Gap + Gender + Age + Education + Kid(s) in the Household Distribution of the unexplained differences Unexplained Earnings Gap between Teachers and Other Professionals and Technicians along percentiles of the earnings distribution 150 100 50 0 -50 -100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns 200 Labor Earnings Percentile Original Gap + Gender + Age + Education + Kid(s) in the Household + Elder(s) in the Household Distribution of the unexplained differences 200 150 100 50 0 -50 -100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns Unexplained Earnings Gap between Teachers and Other Professionals and Technicians along percentiles of the earnings distribution Labor Earnings Percentile Original Gap + Gender + Age + Education + Kid(s) in the Household + Elder(s) in the Household + Household Head Distribution of the unexplained differences 200 150 100 50 0 -50 -100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns Unexplained Earnings Gap between Teachers and Other Professionals and Technicians along percentiles of the earnings distribution Labor Earnings Percentile Original Gap + Gender + Age + Education + Kid(s) in the Household + Elder(s) in the Household + Household Head + Part-time Work Distribution of the unexplained differences 200 150 100 50 0 -50 -100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns Unexplained Earnings Gap between Teachers and Other Professionals and Technicians along percentiles of the earnings distribution Labor Earnings Percentile Original Gap + Gender + Age + Education + Kid(s) in the Household + Elder(s) in the Household + Household Head + Part-time Work + Formality Distribution of the unexplained differences (1) Age 200 150 100 50 0 -50 -100 -100 -50 0 50 100 150 % of Average School Teachers' Earnings 200 Gender Female Male CI(90%) CI(99%) 24 & under 25 to 34 35 to 44 CI(90%) 45 to 54 CI(99%) 55 & over Distribution of the unexplained differences (2) None/Prim inc. 200 Kid(s) in the Household -100 -50 0 50 100 150 % of Average School Teachers' Earnings -100 -50 0 50 100 150 200 Education Prim. comp/Sec inc. Sec. comp/Ter inc. CI(90%) CI(99%) Ter comp. No kids at home Kid(s) at kome CI(90%) CI(99%) Distribution of the unexplained differences (3) 200 Household Head -100 -50 0 50 100 150 % of Average School Teachers' Earnings -100 -50 0 50 100 150 200 Elder(s) in the Household No elders at home Elder(s) at home CI(90%) CI(99%) Is not household head Is household head CI(90%) CI(99%) Distribution of the unexplained differences (4) 200 Part-time Work -100 -50 0 50 100 150 % of Average School Teachers' Earnings -100 -50 0 50 100 150 200 Other Wage Earner in the Household One wage earner at home Oth. wage earner CI(90%) CI(99%) Full time work Part-time work CI(90%) CI(99%) Distribution of the unexplained differences (5) 200 Work in Public Sector 150 100 50 0 -50 -100 -100 -50 0 50 100 150 % of Average School Teachers' Earnings 200 Formality Informal job Formal job CI(90%) CI(99%) Public Sector Private Sector CI(90%) CI(99%) The gap is still important when considering job-break periods Decompositions Using the "Full Set" of Observable Characteristics School Teachers vis-à-vis Other Professionals and Technicians Pre-School and Elementary Teachers vis-à-vis Other Professionals and Technicians Secondary Teachers vis-à-vis Other Professionals and Technicians 17.4% 57.2% 28.8% 61.8% -9.5% 46.2% (0.04) (0.04) (0.15) 64.6% 75.6% 79.4% 79.6% 28.8% 66.2% (0.03) (0.03) (0.09) 47.5% 57.6% 60.7% 61.3% 15.4% 48.9% (0.03) (0.03) (0.08) Prorated hourly earnings ∆ ∆0 Monthly earnings ∆ ∆0 Yearly earnings ∆ ∆0 Standard errors in parentheses Source: National household surveys Tenure is a differentiating factor 0 .05 .1 .15 Kernel Density Function (6 countries with data on job tenure), 2 bandwith 0 20 40 60 Job tenure (in years) Teachers Other Prof. and Tech. Particularly in the public sector 0 .05 .1 .15 Kernel Density Function (6 countries with data on job tenure), 2 bandwith 0 20 40 Job tenure (in years) Public Sector Teachers Private Sector Teachers 60 0 .5 1 1.5 2 2.5 3 And the way teachers’earnings evolve with tenure is more “plain” 0 10 20 30 Job tenure (in years) Teachers Other Prof. and Tech. 40 Evolution of Teachers’ Salaries in Latin America at the turn of the 20th century This paper: 7 countries (14 household surveys) Country Name Of The Survey Brazil Pesquisa Nacional por Amostra de Domicilio (PNAD) Chile Encuesta de Caracterizacion Socioeconomica Nacional (CASEN) Ecuador El Salvador Mexico Nicaragua Uruguay Encuesta de Empleo, Desempleo y Subempleo (ENEMDU) Encuesta de Hogares de Propositos Multiples (EHPM) Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH) Encuesta Nacional de Hogares sobre medicion de Niveles de Vida (EMNV) Encuesta Continua de Hogares (ECH) Year 1995 2009 1998 2009 1995 2006 1995 2009 1996 2008 1998 2007 1998 2007 Descriptive statistics: the sociodemographic profile Pre-School and Elementary Teachers Secondary Teachers All School Teachers Other Professionals and Technicians Circa 1997 Circa 2007 Circa 1997 Circa 2007 Circa 1997 Circa 2007 Circa 1997 Circa 2007 12.5% 11.7% 41.8% 36.1% 19.5% 17.5% 55.4% 55.0% 15.2% 37.3% 30.6% 13.6% 3.3% 10.7% 32.5% 31.2% 19.0% 6.5% 9.1% 32.2% 35.2% 18.6% 4.9% 8.2% 26.0% 30.8% 24.2% 10.8% 13.8% 36.1% 31.7% 14.8% 3.7% 10.1% 31.0% 31.1% 20.3% 7.5% 13.5% 38.2% 29.4% 13.1% 5.8% 15.4% 33.7% 24.8% 17.6% 8.5% Secondary complete or tertiary incomplete Tertiary complete 4.4% 7.2% 73.5% 14.9% 0.2% 2.3% 89.6% 7.9% 2.5% 2.7% 55.8% 39.0% 0.0% 1.0% 80.4% 18.6% 3.9% 6.2% 69.2% 20.7% 0.2% 1.9% 87.4% 10.5% 6.8% 13.3% 56.6% 23.3% 4.1% 9.1% 71.3% 15.5% Presence of Children (≤12 years) in the Household 48.8% 42.3% 38.0% 35.3% 46.2% 40.6% 45.1% 36.9% Presence of Elder (≥65 years) in the Household 11.5% 12.7% 10.1% 13.9% 11.2% 13.0% 10.7% 12.4% Personal Characteristics Men (Gender) Age Groups 24 and under 25 to 34 35 to 44 45 to 54 54 and over Education Level None or primary incomplete Primary complete or secondary incomplete Descriptive statistics: the sociodemographic profile Pre-School and Elementary Teachers Secondary Teachers All School Teachers Other Professionals and Technicians Circa 1997 Circa 2007 Circa 1997 Circa 2007 Circa 1997 Circa 2007 Circa 1997 Circa 2007 Head of the Household 20.8% 30.1% 42.9% 43.0% 26.1% 33.2% 49.0% 45.7% Presence of Other Household Member with Labor Income 80.7% 76.8% 79.1% 72.2% 80.3% 75.7% 70.4% 71.7% 49.0% 43.8% 29.2% 36.3% 44.3% 42.0% 12.1% 12.9% Personal Characteristics Labor Characteristics Part time workers (≤30 hours) Relative earnings: Average school teachers’ hourly earnings equal to 100 for each country. Average Hourly Earninngs Relative Hourly Earnings (Base: Average School Teacher Earnings circa 1997 in each Country=100) Pre-School and Elementary Teachers Secondary Teachers All School Teachers Other Professionals and Technicians Circa 1997 Circa 2007 Circa 1997 Circa 2007 Circa 1997 Circa 2007 Circa 1997 Circa 2007 92.76 109.19 123.08 141.84 100.00 116.97 143.00 123.56 By Country Brazil Chile Ecuador El Salvador Mexico Nicaragua Uruguay 89.23 96.36 97.95 100.09 98.95 91.94 100.33 106.56 92.34 164.30 129.66 94.99 101.70 132.72 153.08 111.06 102.44 99.17 102.59 151.52 99.58 139.71 118.96 217.45 113.91 100.44 125.66 142.68 100.00 100.00 100.00 100.00 100.00 100.00 100.00 113.93 98.25 181.55 128.04 98.56 105.56 136.95 189.04 137.78 142.99 98.10 74.81 198.57 139.28 133.33 125.22 204.73 121.86 77.24 199.97 166.81 The earnings gaps: pre-school and elementary teachers vs. other professionals and technicians -100 -50 0 50 100 150 200 All teachers vis-à-vis Other Prof. and Tech. Brazil Chile Ecuador El Salvador CI(90%) Period 1 CI(99%) Period 1 Mexico Nicaragua CI(90%) Period 2 CI(99%) Period 2 Uruguay The earnings gaps: pre-school teachers vs. other professionals and technicians -100 -50 0 50 100 150 200 Pre-school and primary teachers vis-à-vis Other Prof. and Tech. Brazil Chile Ecuador El Salvador CI(90%) Period 1 CI(99%) Period 1 Mexico Nicaragua CI(90%) Period 2 CI(99%) Period 2 Uruguay The earnings gaps: secondary teachers vs. other professionals and technicians -100 -50 0 50 100 150 200 Secondary teachers vis-à-vis Other Prof. and Tech. Brazil Chile Ecuador El Salvador CI(90%) Period 1 CI(99%) Period 1 Mexico Nicaragua CI(90%) Period 2 CI(99%) Period 2 Uruguay 150 100 0 50 -50 -100 -100 -50 0 50 % of Average Teachers' Earnings 100 150 Distribution of the unexplained differences (1) Female Male CI(90%) Period 1 CI(99%) Period 1 CI(90%) Period 2 CI(99%) Period 2 24 & under 25 to 34 35 to 44 CI(90%) Period 1 CI(99%) Period 1 45 to 54 55 & over CI(90%) Period 2 CI(99%) Period 2 Distribution of the unexplained differences Unexplained Earnings Gap between Teachers and Other Professionals and Technicians along percentiles of the earnings distribution 150 100 50 0 -50 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns 200 Labor Earnings Percentile Circa 1997 Circa 2007 Distribution of the unexplained differences Unexplained Earnings Gap between Pre-School and Elementary Teachers and Other Professionals and Technicians along percentiles of the earnings distribution 150 100 50 0 -50 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns 200 Labor Earnings Percentile Circa 1997 Circa 2007 Distribution of the unexplained differences Unexplained Earnings Gap between Secondary Teachers and Other Professionals and Technicians along percentiles of the earnings distribution 150 100 50 0 -50 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Percentage of School Teachers' Earnigns 200 Labor Earnings Percentile Circa 1997 Circa 2007 150 100 0 50 -50 -100 -100 -50 0 50 % of Average Teachers' Earnings 100 150 Distribution of the unexplained differences (2) None/Prim inc. Prim. comp/Sec inc. CI(90%) Period 1 CI(99%) Period 1 Sec. comp/Ter inc. Ter comp. CI(90%) Period 2 CI(99%) Period 2 No kids at kome CI(90%) Period 1 CI(99%) Period 1 Kids at home CI(90%) Period 2 CI(99%) Period 2 100 0 50 -50 -100 -100 -50 0 50 % of Average Teachers' Earnings 100 150 Distribution of the unexplained differences (3) No elders at home CI(90%) Period 1 CI(99%) Period 1 Elders at home CI(90%) Period 2 CI(99%) Period 2 Is not household head CI(90%) Period 1 CI(99%) Period 1 Is household head CI(90%) Period 2 CI(99%) Period 2 150 100 0 50 -50 -100 -100 -50 0 50 % of Average Teachers' Earnings 100 150 Distribution of the unexplained differences (4) One wage earner at home CI(90%) Period 1 CI(99%) Period 1 Oth. wage earner CI(90%) Period 2 CI(99%) Period 2 Full time work CI(90%) Period 1 CI(99%) Period 1 Part-time work CI(90%) Period 2 CI(99%) Period 2 Summarizing » » » » Teachers earn between 30% and 70% less than their peers (the situation used to be worse a decade ago) The underpayment persists even after accounting for two important compensating differentials: job schedules and vacation periods The underpayment of more pronounced among older workers, those highly educated and parttimers Still, behind the underpayment it is likely the case that there are important differences in abilities… Colombian new teachers and reading skills COLOMBIA. SABER PRO 2009. 10 Carreras con Puntajes Promedio mas Bajo en Componente de Comprensión Lectora COLOMBIA. SABER PRO 2009. 10 Carreras con Puntajes Promedio mas Alto en Componente de Comprensión Lectora 1. Ing. Quimica 10.42 2. Biologia 10.37 3. Física 10.34 4. Medicina 10.33 5. Economía 10.31 6. Quimica 10.28 33. Fisioterapia 10.00 34. Contaduría 9.99 35. Enfermería 9.98 36. Maestros, Énfasis en C. Naturales 9.97 37. Maestros, Énfasis en C. Sociales 9.97 38. Maestros, Énfasis en Humanidades y Lengua 9.96 39. Terapia Ocupacional 7. Ing. de Petroleos 10.27 8. Ing. Ambiental 10.27 9. Ing. Electrica 10.26 10. Ing. Alimentos 10.25 9.95 40. Maestros, Énfasis en Matemáticas 9.93 41. Educación Física 9.92 42. Maestros, Énfasis en Pedagogía Infantil 43. Normalista Superior 9.88 9.81 Fuente: Instituto Colombiano para la Evaluación de la Educación (ICFES) Nota: Las barras de color rojo corresponden a las carreras relacionadas a la formación de maestros de escuela * Los Normalistas Superiores se forman para cumplir actividades docentes a nivel de primaria y secundaria MUCHAS GRACIAS hugon@iadb.org