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Firms' wage policies and the rise in labor market inequality: The case of Portugal

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  • Ana Rute Cardoso

Abstract

Applying a multi-level wage regression model to a matched employer-employee data set for the years 1983 and 1992, the author investigates whether changes in company wage policies can account for the sharp rise in labor market inequality in Portugal. The results suggest that traditional wage progression mechanisms based on seniority lost influence between the two years, whereas general skills became more valued by employers. Changes in the returns to tenure at the micro level thus had an equalizing impact on the distribution, but sharply increased returns to education, as well as a rising wage disadvantage for women relative to men, increased overall inequality. (Abstract courtesy JSTOR.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 53 (1999)
Issue (Month): 1 (October)
Pages: 87-102

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Handle: RePEc:ilr:articl:v:53:y:1999:i:1:p:87-102

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Cited by:
  1. Alvaredo, Facundo, 2009. "Top incomes and earnings in Portugal 1936-2005," Explorations in Economic History, Elsevier, Elsevier, vol. 46(4), pages 404-417, October.
  2. Cardoso, Ana Rute & Portela, Miguel, 2005. "The Provision of Wage Insurance by the Firm: Evidence from a Longitudinal Matched Employer-Employee Dataset," IZA Discussion Papers 1865, Institute for the Study of Labor (IZA).
  3. Stephan, Gesine & Gerlach, Knut, 2004. "Collective contracts, wages and wage dispersion in a multi-level model," IAB Discussion Paper 200406, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  4. David Card & Jörg Heining & Patrick Kline, 2013. "Workplace Heterogeneity and the Rise of West German Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 128(3), pages 967-1015.
  5. Hipólito Simón, 2010. "International Differences in Wage Inequality: A New Glance with European Matched Employer-Employee Data," British Journal of Industrial Relations, London School of Economics, vol. 48(2), pages 310-346, 06.
  6. Pereira, Sonia C., 2003. "The impact of minimum wages on youth employment in Portugal," European Economic Review, Elsevier, vol. 47(2), pages 229-244, April.
  7. Gesine Stephan & Knut Gerlach, 2005. "Wage settlements and wage setting: results from a multi-level model," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 37(20), pages 2297-2306.
  8. Cardoso, Ana Rute, 2004. "Jobs for Young University Graduates: Is It Worth Having a Degree?," IZA Discussion Papers 1311, Institute for the Study of Labor (IZA).
  9. Jellal, Mohamed & Nordman, Christophe & wolff, François charles, 2008. "Evidence on the glass ceiling effect in France using matched worker-firm data," MPRA Paper 38590, University Library of Munich, Germany.
  10. Bryce Stephens, 2005. "Wage Dispersion, Compensation Policy and the Role of Firms," Longitudinal Employer-Household Dynamics Technical Papers, Center for Economic Studies, U.S. Census Bureau 2005-04, Center for Economic Studies, U.S. Census Bureau.
  11. Facundo Alvaredo, 2008. "Top incomes and earnings in Portugal 1936-2004," PSE Working Papers halshs-00586795, HAL.
  12. Jose Varejao & Anabela Carneiro, 2005. "Plant Turnover and the Evolution of Regional Inequalities," ERSA conference papers ersa05p709, European Regional Science Association.
  13. Michèle A. Weynandt, 2014. "Selective Firing and Lemons," NRN working papers 2014-05, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  14. Sónia Torres & Pedro Portugal & John T. Addison & Paulo Guimarães, 2010. "The Sources of Wage Variation: An Analysis Using Matched Employer-Employee Data," Working Papers w201025, Banco de Portugal, Economics and Research Department.
  15. repec:hal:wpaper:halshs-00586795 is not listed on IDEAS

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