The purpose of this study is to empirically investigate gender differences in the returns to different levels of education and studying in STEM fields in Mexico. Specifically, we estimate the effects of education on employment and income.
We use data about more than 4.5 m individuals in the year 2020 in Mexico to estimate the average treatment effects of different levels of education and studying in STEM fields on income and employment. To obtain these estimates, we apply several econometric models that address non-random selection into employment and different levels of education.
The results of the analysis suggest that, on average, women experience negative returns to STEM education, both in terms of income and employment probability. In contrast, studying in STEM field has positive effect on the income of men. Additionally, in terms of income, women have higher returns to secondary, vocational and bachelor’s levels of education, while men have greater returns from a master’s degree.
Our findings suggest that changes in the labor market are essential to create an equitable environment for women pursuing STEM education. Addressing discrimination in the labor market and ensuring fair hiring practices will not only enhance the effectiveness of the labor market itself but also contribute to reducing inequality in the education system. Particularly, the issue of small or even negative returns to STEM education for women – both in terms of incomes and probability of employment – should be addressed.
We provide novel estimates that characterize gender disparities in the returns to education in Mexico. Specifically, we contribute to previous studies on Mexico by examining different levels of higher education and studying in STEM fields. Particularly, our estimates contribute to the explanation of gender inequality in obtaining STEM education.
