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There are several possible explanations for the observed changes in inequality, the returns to education, and the gap between the wages of informal and formal salaried workers in Argentina over the period 1980-2002. Largely due to the lack of evidence for competing explanations, skill-biased technical change is the most likely explanation for the increases in the returns to education that occurred in the 1990s. Using a semi-parametric re-weighting variance decomposition technique and data from the Permanent Household Survey, the authors show that during the same period there was an increase in the returns to unobserved skill. This finding lends support to the hypothesis that skill-biased technical change has been a main driver of increases in inequality in Argentina. The pattern of changes suggests that the growth in returns to unobserved skill may have been partly responsible for the relative deterioration of informal salaried wages during the 1990s.

Access and Equity in Basic Education --- Debt Markets --- Earnings Inequality --- Education --- Education for All --- Finance and Financial Sector Development --- Household Survey --- Labor Markets --- Minimum wage --- Primary Education --- Salaried employment --- Salaried workers --- Skilled workers --- Social Protections and Labor --- Union membership --- Wage distribution --- Wage employment --- Wage inequality

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This paper investigates the occupational mobility and job quality of young people in Indonesia and relates this to the concept of "scarring." The concept of labor market scarring in this paper is the occurrence of low or zero returns to certain types of work (for example, self-employment). Scarring is expected to occur whenever an individual spends periods working in occupations in which their human capital is either stagnant or deteriorating. Fixed effects estimations using panel data from the Indonesian Family Life Survey reveal that a period in self-employment is associated with negative returns for youth (about 3 to 4 percent per year penalty), but not for older adults. In addition, there are clear patterns of persistence in self-employment over time with few individuals progressing from petty self-employment to businesses with permanent workers.

Adult males --- Aggregate unemployment --- Casual worker --- College graduate --- Contingent workers --- Displaced workers --- Earning --- Earnings losses --- Educational attainment --- Employee --- Employment outcomes --- Employment probability --- Employment prospects --- Employment status --- Expected wages --- Family labor --- Full time job --- Health insurance --- Household characteristics --- Human capital --- Human resource --- Informal employment --- Informal sector --- Job --- Job creation --- Job match --- Job search --- Job security --- Job separation --- Job status --- Job training --- Labor --- Labor contract --- Labor economics --- Labor force --- Labor management & relations --- Labor market --- Labor market characteristics --- Labor market experience --- Labor market outcomes --- Labor market segmentation --- Labor markets --- Labor policies --- Labor productivity --- Labor relations --- Labor standards --- Labour --- Labour market --- Long term wage --- Occupational mobility --- Older workers --- Permanent employment --- Permanent worker --- Permanent workers --- Private sector --- Private sector workers --- Public sector employment --- Safety net --- Salaried employment --- Self-employed --- Self-employment --- Social protections and labor --- Temporary work --- Temporary workers --- Unemployed --- Unemployed individual --- Unemployed youth --- Unemployment --- Unemployment rate --- Wage differentials --- Wage effects --- Wage employment --- Wage growth --- Wage impact --- Wage rates --- Wage sector --- Wage subsidies --- Work experience --- Worker --- Workers --- Working conditions --- Youth employment --- Youth unemployment