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A Quantile Regression Analysis of Wages in Panama

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Author Info
Evangelos M. Falaris () (Department of Economics,University of Delaware)

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Abstract

I investigate differences in the effects of worker characteristics on wages in Panama at different points of the conditional wage distribution. Public sector employment increases wages of men and of women relatively more at lower quantiles. Public sector employment increases wages of the median worker in that sector and reduces wage inequality within the sector. The existence of a labor union at a worker’s workplace increases relatively more wages of men at lower quantiles. Labor unions reduce male wage inequality within the union sector and increase average wages of union members. Unions do not increase women’s wages but reduce wage inequality within the union sector. Working for a large firm increases wages relatively more at lower quantiles. Rates of return to higher education and to experience are larger for men at higher quantiles. Experience and higher education increase men’s wage inequality. There are no differences across quantiles in rates of return to schooling and experience for women.

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File URL: http://www.lerner.udel.edu/economics/WorkingPapers/2004/UDWP2004-01.pdf
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Publisher Info
Paper provided by University of Delaware, Department of Economics in its series Working Papers with number 04-01.

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Length: 29 pages
Date of creation: 2004
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Publication status: Forthcoming in Review of Development Economics.
Handle: RePEc:dlw:wpaper:04-01

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Postal: Purnell Hall, Newark, Delaware 19716
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Web page: http://www.lerner.udel.edu/departments/economics/
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Related research
Keywords: wages; Panama; quantile regression;

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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  1. Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, vol. 11(3), pages 355-371, June. [Downloadable!] (restricted)
  2. Schaffner, Julie Anderson, 1998. "Premiums to employment in larger establishments: evidence from Peru," Journal of Development Economics, Elsevier, vol. 55(1), pages 81-113, February. [Downloadable!] (restricted)
  3. Mwabu, Germano & Schultz, T Paul, 1996. "Education Returns across Quantiles of the Wage Function: Alternative Explanations for Returns to Education by Race in South Africa," American Economic Review, American Economic Association, vol. 86(2), pages 335-39, May. [Downloadable!] (restricted)
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  4. Charles Brown & James L. Medoff, 1989. "The Employer Size-Wage Effect," NBER Working Papers 2870, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Mueller, Richard E., 1998. "Public-private sector wage differentials in Canada: evidence from quantile regressions," Economics Letters, Elsevier, vol. 60(2), pages 229-235, August. [Downloadable!] (restricted)
  6. Kahn, Lawrence M, 1998. "Collective Bargaining and the Interindustry Wage Structure: International Evidence," Economica, London School of Economics and Political Science, vol. 65(260), pages 507-34, November. [Downloadable!] (restricted)
  7. T. Paul Schultz & Germano Mwabu, 1998. "Labor unions and the distribution of wages and employment in South Africa," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 51(4), pages 680-703, July.
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