Labor market participation, returns to education, and male - female wage differences in Peru

Abstract

Using household survey data from Peru, the author estimates differences between male and female participation in the labor market, productivity (measured by wages), and economic returns to schooling. He tries to identify characteristics that enable some women to participate in the labor market, to determine whether the private returns to education vary by gender and influence school enrollment, and to evaluate the extent to which the male female wage gap is caused by differences in human capital. The author reaches three policy conclusions : 1) public schools are less effective than private schools in raising productivity and reducing the wage gap, 2) investments in education and training for girls increase their participation and productivity in the labor market more than a similar investment in boys'education increases theirs, and 3) households and communities are probably the main sources of gender bias in parental investment in children's education, so the government must identify ways to influence the household's decisions about education.

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