Skills for the 21st Century in Latin America and the Caribbean

Abstract

Contributes important new findings on the dynamics of education systems and labor market outcomes in Latin America and the Caribbean (LAC). It analyzes an important recent shift in labor market trends in LAC: the first decade of the 21st century has witnessed a marked decline in the earnings premia for university and secondary education. This, in turn, is contributing to reduced income inequality across the region. The recent trend contrasts with the sharp rise in tertiary earnings premia that was observed in the 1990s and that helped to reinforce high levels of income inequality in the region at that time.