Inter-regional Wage Dispersion in Portugal
AbstractThis paper examines the size o inter-regional wage dispersion in Portugal. For this purpose, we estimate a Mincer-type human capital wage equation, including controls for a large number of regions, and calculate a weighted and adjusted standard deviation (WASD) of inter-regional wage differentials. The value is high and quite stable over time. The highest wages are found in the region of Lisbon. Moreover, the results are quite sensitive to inclusion of human capital and industry controls. A decomposition analysis reveals that differences in average years of education and in the return to education across regions account for a significant fraction of observed wage differentials.
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Bibliographic InfoArticle provided by Euro-American Association of Economic Development in its journal Regional and Sectoral Economic Studies.
Volume (Year): 6 (2006)
Issue (Month): 1 ()
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Web page: http://www.usc.es/economet/eaa.htm
Other versions of this item:
- José António Cabral Vieira & João Pedro Almeida Couto & Maria Teresa Borges Tiago, 2005. "Inter-regional Wage Dispersion in Portugal," ERSA conference papers ersa05p160, European Regional Science Association.
- Vieira, José A. Cabral & Couto, João Pedro Almeida & Borges Tiago, Maria Teresa, 2005. "Inter-Regional Wage Dispersion in Portugal," IZA Discussion Papers 1664, Institute for the Study of Labor (IZA).
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
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