Table S2.8 Variance Decomposition in Sector-Occupations and Skills Using the AKM Model by Country

|||Level<br>||Cha<br>|nge<br>|
|---|---|---|---|---|---|
||1995|2002|2015|1995-2002|2002-15|
|Argentina||||||
|Total variance|0.396|0.473|0.381|0.077|-0.092|
|Variance in sector-occupation|0.059|0.069|0.039|0.009|-0.030|
|Variance in skill-groups<br>|0.058|0.093<br>|0.041<br>|0.035|-0.051|
|2*Cov(sector-occupation, experience-education)|0.036|0.049|0.024|0.013|-0.025|
|Residual|0.242|0.262|0.277|0.020|0.014|
|Bolivia||||||
|Total Variance|1.157|0.986|0.572|-0.170|-0.415|
|Variance in sector-occupation|0.304|0.258|0.096|-0.046|-0.161|
|Variance in skill-groups|0.171|0.092|0.046|-0.079|-0.046|
|2*Cov(sector-occupation, experience-education)|0.117|0.073|0.041|-0.044|-0.032|
|Residual|0.565|0.563|0.388|-0.002|-0.175|
|Brazil||||||
|Total Variance|0.687|0.622|0.437|-0.064|-0.185|
|Variance in sector-occupation|0.065|0.084|0.029|0.019|-0.055|
|Variance in skill-groups|0.165|0.115|0.095|-0.050|-0.020|
|2*Cov(sector-occupation, experience-education)|0.057|0.088|0.042|0.031|-0.046|
|Residual|0.400|0.335|0.272|-0.065|-0.063|
|Costa Rica||||||
|Total Variance|0.338|0.422|0.427|0.085|0.005|
|Variance in sector-occupation|0.049|0.074|0.098|0.024|0.024|
|Variance in skill-groups|0.044|0.048|0.031|0.004|-0.017|
|2*Cov(sector-occupation, experience-education)|0.046|0.068|0.060|0.022|-0.008|
|Residual|0.199|0.233|0.238|0.034|0.005|
|Mexico||||||
|Total Variance|0.533|0.566|0.510|0.033|-0.056|
|Variance in sector-occupation|0.078|0.086|0.067|0.008|-0.018|
|Variance in skill-groups|0.084|0.083|0.068|-0.001|-0.015|
|2*Cov(sector-occupation, experience-education)|0.066|0.063|0.061|-0.003|-0.002|
|Residual|0.305|0.335|0.314|0.029|-0.020|
|Nicaragua||||||
|Total Variance|0.564|0.476|0.358|-0.088|-0.118|
|Variance in sector-occupation|0.079|0.051|0.034|-0.028|-0.017|
|Variance in skill-groups|0.049|0.031|0.029|-0.018|-0.002|
|2*Cov(sector-occupation, experience-education)|0.036|0.026|0.024|-0.010|-0.002|
|Residual|0.400|0.368|0.271|-0.032|-0.097|
|Peru||||||
|Total Variance|0.555|0.653|0.501|0.098|-0.152|
|Variance in sector-occupation|0.099|0.134|0.088|0.035|-0.046|
|Variance in skill-groups|0.059|0.052|0.033|-0.007|-0.019|
|2*Cov(sector-occupation, experience-education)|0.040|0.053|0.043|0.013|-0.009|
|Residual|0.358|0.415|0.337|0.058|-0.078|
|El Salvador||||||
|Total Variance|0.446|0.633|0.411|0.188|-0.222|
|Variance in sector-occupation|0.092|0.154|0.082|0.062|-0.072|
|Variance in skill-groups|0.064|0.028|0.023|-0.035|-0.005|
|2*Cov(sector-occupation, experience-education)<br>Residual|0.058<br>0.232|0.036<br>0.414|0.037<br>0.269|-0.021<br>0.182|0.001<br>-0.146|

_Source_ : Authors’ calculations based on data from the Socioeconomic Database for Latin America and the Caribbean, World Bank and Center for Distributive, Labor and Social Studies of the Universidad Nacional de La Plata (CEDLAS) (http://sedlac.econo.unlp.edu.ar/eng). _Note:_ Total wage variance is the variance of the log hourly wage in the household surveys data set. Variance in skill-groups is the variance of the log real hourly wage that is explained by a full set of gender, education, and experience dummies, and their interaction. The variance in sector-occupation is the variance of the log real hourly wage that is explained by a full set of sector-occupation dummies. AKM = Abowd, Kramarz, and Margolis (1999).

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