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Regional Wage Differentials: Static And Dynamic Approaches

Author

Listed:
  • Joao Pereira

    (Universidade de Evora, Departamento de Economia)

  • Aurora Galego

    (Universidade de Evora, Departamento de Economia)

Abstract

This 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.

Suggested Citation

  • Joao Pereira & Aurora Galego, 2007. "Regional Wage Differentials: Static And Dynamic Approaches," CEFAGE-UE Working Papers 2007_07, University of Evora, CEFAGE-UE (Portugal).
    • Handle: RePEc:cfe:wpcefa:2007_07
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    Citations

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    Cited by:

    1. João Pereira & Aurora Galego, 2014. "Inter-Regional Wage Differentials in Portugal: An Analysis Across the Wage Distribution," Regional Studies, Taylor & Francis Journals, vol. 48(9), pages 1529-1546, September.
    2. Eva Lajtkepová, 2020. "Distribution of Wages in the Regions of the Czech Republic," ACTA VSFS, University of Finance and Administration, vol. 14(2), pages 123-136.
    3. Joao Pereira & Aurora Galego, 2013. "Intra-Regional Regional Wage Inequality In Portugal: A Quantile Based Decomposition Analisys," ERSA conference papers ersa13p158, European Regional Science Association.
    4. Jean-Baptiste Combes & Eric Delattre & Bob Elliott & Diane Skåtun, 2015. "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," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(7), pages 763-780, September.
    5. Aurora Galego & João Pereira, 2014. "Decomposition of Regional Wage Differences Along the Wage Distribution in Portugal: The Importance of Covariates," Environment and Planning A, , vol. 46(10), pages 2514-2532, October.
    6. Michaela Fuchs & Anja Rossen & Antje Weyh & Gabriele Wydra‐Somaggio, 2021. "Where do women earn more than men? Explaining regional differences in the gender pay gap," Journal of Regional Science, Wiley Blackwell, vol. 61(5), pages 1065-1086, November.
    7. Enrique López-Bazo & Elisabet Motellón, 2013. "The regional distribution of unemployment: What do micro-data tell us?," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 383-405, June.
    8. Aurora A. C. Teixeira & Ana Sofia Loureiro, 2019. "FDI, income inequality and poverty: a time series analysis of Portugal, 1973–2016," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 18(3), pages 203-249, October.
    9. Ricardo Freguglia & Naercio Menezes-Filho, 2012. "Inter-regional wage differentials with individual heterogeneity: evidence from Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 17-34, August.
    10. Rodrigo Oliveira & Raul da Mota Silveira Neto, 2021. "Re-examining the Brazilian South-Northeast labour income gap: A decomposition approach," WIDER Working Paper Series wp-2021-117, World Institute for Development Economic Research (UNU-WIDER).
    11. Donghyun Kim & Up Lim, 2017. "Wage Differentials between Heat-Exposure Risk and No Heat-Exposure Risk Groups," IJERPH, MDPI, vol. 14(7), pages 1-17, June.
    12. Inés P. Murillo Huertas & Raúl Ramos & Hipólito Simón, 2020. "Revisiting interregional wage differentials: New evidence from Spain with matched employer‐employee data," Journal of Regional Science, Wiley Blackwell, vol. 60(2), pages 296-347, March.
    13. Bartłomiej Rokicki, 2013. "Ewolucja regionalnego zróżnicowania płac realnych w Polsce," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 9, pages 53-67.
    14. Tudorel ANDREI & Bogdan OANCEA & Andreea MIRICA, 2017. "Action against Income Discrimination. Case Study: Roma Minority in Romania," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 51(4), pages 19-36.

    More about this item

    Keywords

    Regions; Wage Differentials; Wage Gap Decompositions;
    All these keywords.

    JEL classification:

    • 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

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