Has product market competition reshaped returns to schooling in Mexico?

This paper analyzes the impact of product market competition on returns to schooling in Mexico, a country lagging behind in competition indicators and a complex labor market. With microdata from employment surveys, we first separate the premia for specific education levels at the industry level, and then pool them to link it with industry data for competition. Results show that product market competition has a positive effect on wage premia for high skilled workers, while there is no evidence for lower levels.