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Wage Mobility: Do Institutions Make a Difference? A Replication Study Comparing Portugal and the UK

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  • Cardoso, Ana Rute

    (IAE Barcelona (CSIC))

Abstract

This study compares wage mobility in Portugal and the UK, replicating the work by Dickens (2000) and progressing to discuss the impact of differences in the institutional framework, which is more regulated and centralized in Portugal, with minimum wages, employment protection, and collective bargaining widely applied. Results indicate that both countries became more unequal and less mobile labour markets, having departed from similar levels in mid-80s. The evidence does not support the idea that a more regulated institutional framework reduces individual mobility within the wage distribution.

Suggested Citation

  • Cardoso, Ana Rute, 2004. "Wage Mobility: Do Institutions Make a Difference? A Replication Study Comparing Portugal and the UK," IZA Discussion Papers 1086, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1086
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    References listed on IDEAS

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    1. Cardoso, Ana Rute & Portugal, Pedro, 2003. "Bargained Wages, Wage Drift and the Design of the Wage Setting System," IZA Discussion Papers 914, Institute of Labor Economics (IZA).
    2. Moshe Buchinsky & Jennifer Hunt, 1999. "Wage Mobility In The United States," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 351-368, August.
    3. A. R. Cardoso, 2000. "Wage differentials across firms: an application of multilevel modelling," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(4), pages 343-354.
    4. Stephen Machin, 1998. "Recent shifts in wage inequality and the wage returns to education in Britain," National Institute Economic Review, National Institute of Economic and Social Research, vol. 166(1), pages 87-96, October.
    5. Machin, Stephen, 1996. "Wage Inequality in the UK," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 12(1), pages 47-64, Spring.
    6. Ana Rute Cardoso, 1999. "Firms' Wage Policies and the Rise in Labor Market Inequality: The Case of Portugal," ILR Review, Cornell University, ILR School, vol. 53(1), pages 87-102, October.
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    Cited by:

    1. Cardoso, Ana Rute, 2006. "Wage mobility: do institutions make a difference?," Labour Economics, Elsevier, vol. 13(3), pages 387-404, June.
    2. Santos Raposo, P.M. & van Ours, J.C., 2008. "How Working Time Reduction Affects Employment and Earnings," Discussion Paper 2008-81, Tilburg University, Center for Economic Research.
    3. Paulo Bastos & Natália P. Monteiro, 2011. "Managers and Wage Policies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(4), pages 957-984, December.
    4. Bachmann, Ronald & Beimann, Boris & Bredtmann, Julia & David, Peggy & Ehlert, Christoph & Kassenböhmer, Sonja & Schaffner, Sandra & Siemers, Lars, 2011. "Studies on flexicurity Lot 1: Study on various aspects of labour market performance using micro data from the European Union statistics on income and living conditions (EU-SILC). Contract No. VC/2010/," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72620.
    5. Marta Silva & Luis Filipe Martins & Helena Lopes, 2015. "Asymmetric labour market reforms and wage growth with fixed-term contracts: does learning about match quality matter?," Working Papers Series 2 15-04, ISCTE-IUL, Business Research Unit (BRU-IUL).

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    More about this item

    Keywords

    wage dispersion; wage mobility;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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