The Magallanes region has been designated "Extreme Zone" status, ensuring residents have access to better development conditions which generally emerge and remain in the geographical centre of Chile. Thus, in this territory, average wages are higher than the rest of the country, although still below those of the Metropolitan region. This study analyzes the production and occupational structure, as well as earned income of both regions. The salary functions of men and women are estimated, in order to calculate regional wage gaps according to gender. The main conclusions are the existence of a lower factor endowment in Magallanes, which would account for lower women's salaries. Nevertheless, this gap is not present in the case of men's wages; furthermore, women's factor performance in Magallanes is also estimated to be inferior, which probably occurs because they tend to work in sectors with a lower relative dynamism.