Título en español.

Abstract

This article the author presents an analysis of the supply and demand for skills and returns to education in Puerto Rico. In spite that evident changes in the economy suggest the need for a better skilled labor, men‘s returns to education in Puerto Rico have not increased and in effect, college graduates lost ground relative to high school dropouts and high school graduates. An increase in returns to education is observed among women, but this could be due to occupational upgrading and not to a better return to college degrees. The shift toward low-paying industries cannot completely explain de wage lost of college graduates. College graduates lost some of their wage advantage in almost all the industries. Possibly, the increase in supply was too large, provoking a decline in wages.