Human capital and gender wage inequality in Mexico: an analysis using the Oaxaca-Blinder decomposition
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This study examines the gender pay gap in Mexico from a human capital theory perspective, using the Mincer equation and the Oaxaca and Blinder decomposition. The main objective is to determine the extent to which wage differences between women and men can be attributed to observable variables, such as educational level, work experience, and occupation, and what proportion corresponds to unobservable factors, potentially associated with discriminatory practices or structural barriers; under the assumption that wages should not differ by sex. The findings reveal that only 1.6% of the pay gap can be explained by differences in average schooling and work experience between the two genders; in contrast, the remaining 98.4% is attributable to an unexplained component, suggesting the presence of discrimination or structural mechanisms that limit equitable access to income. This provides evidence that, despite improvements in women´s educational attainment, gender wage inequalities persist, underscoring the need for public policies to close these gaps. The results were obtained using ordinary least squares estimation with data from the 2023 National Survey of Occupation and Employment (ENOE). This study attains academic relevance by contributing empirical evidence on the persistence of the gender wage gap in Mexico.
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