Regional Wage Differentials: Static And Dynamic Approaches
AbstractThis work aims at studying regional wage differentials both in a static and in a dynamic perspective. Previous studies have typically studied this issue using the Blinder and Oaxaca static decomposition. This approach does not provide clear information about the sources explaining the change in regional wage differentials along the years. To overcome this problem this study also uses Junh, Murphy and Pierce (1991,1993) decomposition. We analyse the case of Portugal for 1995 and 2002. Our results show that, although there are small changes in the interregional wage inequality, particularly between the region of Lisboa and the other regions, there are important and counteracting factors shaping this outcome. In fact, Lisboa has reinforced its position as the region with more qualified workers, but the gap in unobserved characteristics has decreased.
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Bibliographic InfoPaper provided by University of Evora, CEFAGE-UE (Portugal) in its series CEFAGE-UE Working Papers with number 2007_07.
Length: 30 pages
Date of creation: 2007
Date of revision:
Regions; Wage Differentials; Wage Gap Decompositions;
Other versions of this item:
- João Pereira & Aurora Galego, 2011. "Regional wage differentials in Portugal: Static and dynamic approaches," Papers in Regional Science, Wiley Blackwell, vol. 90(3), pages 529-548, 08.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-12-08 (All new papers)
- NEP-GEO-2007-12-08 (Economic Geography)
- NEP-LAB-2007-12-08 (Labour Economics)
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- Eric Delattre & Jean-Baptiste Combès & Bob Elliott & Diane Skatun, 2012. "Hospital Staffing and Local Pay: an Investigation into the Impact of Local variations in the Competitiveness of Nurses Pay on the Staffing of Hospitals in France," THEMA Working Papers 2012-35, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Aurora Galego & João Pereira, 2013. "Decomposition of Regional Wage Differences Along the Wage Distribution in Portugal: the Importance of Covariates," CEFAGE-UE Working Papers 2013_16, University of Evora, CEFAGE-UE (Portugal).
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