Gender Wage Gap in Mexico: Oaxaca–Blinder Decomposition with Sample Selection Correction and Heterogeneity by Employment Formality (2018–2025)

Authors

DOI:

https://doi.org/10.29105/ensayos45.2-6

Keywords:

gender wage gap, Oaxaca–Blinder decomposition, Heckman correction

Abstract

Objective: To analyze the magnitude, composition, and heterogeneity of the gender wage gap in Mexico during the period 2018–2025, excluding 2020 and 2021, with the aim of evaluating its temporal stability and differences across the formal and informal labor market sectors. Methodology: An Oaxaca–Blinder decomposition with Heckman selection correction and parametric identification based on fertility exclusion restrictions was applied to deduplicated microdata from the National Survey of Occupation and Employment (ENOE). Standard errors were estimated using the delta method with clustering at the primary sampling unit level. Findings: The results documented a conditional wage gap that remained stable at around 30% throughout the period, with a negative explained component indicating that women exhibited a more favorable observable composition on average. The disparity was concentrated in the informal sector, where the gap was approximately three times larger than in the formal sector. Selection bias was statistically detectable but economically modest. Implications: The findings suggest that employment formalization constitutes a plausible mechanism for reducing the aggregate gender wage gap by limiting the scope for wage penalties not attributable to observable endowments. Originality: The study provides evidence on the temporal stability and heterogeneity of the gender wage gap in Mexico by combining the Oaxaca–Blinder decomposition with Heckman selection correction and explicitly comparing formal and informal labor market sectors.

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Author Biographies

José Alberto Pérez Gómez, Benemérita Universidad Autónoma de Puebla

José Alberto Pérez Gómez holds a B.A. in Economics and an M.A. in Political Science from the Benemérita Universidad Autónoma de Puebla (BUAP) and a Ph.D. in Regional Development from El Colegio de Tlaxcala. Since 2010, he has served as a Professor-Researcher at BUAP, where his academic work has focused on poverty and regional inequality, political economy, citizen participation, public policy evaluation, and territorial development. His professional experience combines academia and public administration. He served as Director of Planning for the Municipality of San Pedro Cholula in 2024, has evaluated federal programs such as FISMDF and FORTAMUNDF in Tehuacán, has led municipal economic specialization assessments, and is a member of BUAP's roster of evaluators. He has extensive technical training in modern econometrics, spatial econometrics, geostatistics, impact evaluation, and performance-based budgeting, supported by numerous diplomas and professional certifications earned between 2014 and 2025. He is proficient in Stata, Python, and RStudio and applies methodologies including Difference-in-Differences, Propensity Score Matching, ARIMA/GARCH models, spatial regression models (SAR/SDM), and quantile regression.

Steve Aguilar Hernández, Benemérita Universidad Autónoma de Puebla

Steve Aguilar holds a B.A. in Economics from the Benemérita Universidad Autónoma de Puebla (BUAP), with training in applied economic, statistical, and econometric analysis. His research experience focuses on data management and analysis, econometric modeling, and the evaluation of economic and social phenomena, with particular interests in labor markets, inequality, regional economics, and public policy. He has participated in research projects using Stata, R, Excel, and Geographic Information Systems (GIS), applying methodologies such as regression analysis, Oaxaca–Blinder decomposition, Heckman selection correction, and spatial econometric models. His undergraduate thesis examines the gender wage gap in Mexico using econometric techniques applied to microdata from the National Survey of Occupation and Employment (ENOE). Professionally, he has experience in financial analysis, account reconciliation, and administrative information management, which has strengthened his analytical, organizational, problem-solving, and teamwork skills. He is currently pursuing an M.A. in Economics at BUAP, with the goal of advancing quantitative applied economic analysis and contributing to the design and evaluation of evidence-based public policies that promote Mexico's economic and social development.

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Published

2026-07-31

How to Cite

Pérez Gómez, J. A., & Aguilar Hernández, S. (2026). Gender Wage Gap in Mexico: Oaxaca–Blinder Decomposition with Sample Selection Correction and Heterogeneity by Employment Formality (2018–2025). Ensayos Revista De Economía, 45(2), 307–343. https://doi.org/10.29105/ensayos45.2-6

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