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This dissertation consists of three distinct papers. The first chapter estimates the labor market value of being bilingual (English-speaking) in Mexico. The second chapter studies employers' ex ante discriminatory practices in China and Mexico. Finally, the third chapter estimates a compensating differential for fatality risk for workers in Mexico. An abstract for each chapter is provided below. Chapter 1 Abstract: In spite of the generally accepted status of English as a lingua franca, the labor market returns to English for its role as an international language are understudied. In this paper I use advertisements from Computrabajo.com.mx to estimate the returns to English in Mexico. I find that the wage premium for English speakers is approximately 28 percent for the sample as a whole.
In this dissertation I address issues related to labor markets, regulations and circular migration. In the first essay (with Tim Gindling and Juan Diego Trejos) we contribute to the literature of the impact of non-compliance on labor market outcomes in developing economies by evaluating the impact of the Campaña Nacional de Salarios Mínimos, designed by the Costa Rican government to increase compliance with minimum wages. Using a two-year panel data set of individuals we use a regression discontinuity approach and compare what happened to workers who before the Campaign had been earning below the minimum wage to those who had been earning above the minimum wage. We find that the Campaign led to an increase in compliance with minimum wages especially for women, younger, and less educated workers. We find no evidence that the Campaign had a negative impact on the employment of full-time workers.