Salary discrimination in the labor market in El Salvador during the period 2018-2020

Abstract

The present work describes and analyzes the theory of statistical discrimination, which has been used over the years since the early 70s to explain the behavior of discriminatory tastes in economics, in particular the type of statistical discrimination is analyzed (statistical- discrimination). Then a relationship is made with other types of studies applied in the field, with different variables; Finally, the existence of discrimination in the Salvadoran labor market is determined due to the condition of academic level for the periods of 2018, 2019 and 2020. In the estimation of results, we work with official data from the DIGESTYC of El Salvador, and the principles of discrimination focused on the educational level are applied to demonstrate that there is a correlation between the income level of a person and the years of study carried out by the same. The results show that the salary gap between people who did not study, that is, who do not have any degree of study, is 293% for the year 2018, 300% for 2019 and 300% for the year 2020. These results demonstrate the Wage discrimination in the Salvadoran labor market.