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Within-Groups Wage Inequality and Schooling: Further Evidence for Portugal

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  • Andini, Corrado

    ()
    (University of Madeira)

Abstract

This paper provides further evidence on the positive impact of schooling on within-groups wage dispersion in Portugal, using data on male workers from the 2001 wave of the European Community Household Panel. The issue of schooling endogeneity is taken into account by using the newest available instrumental-variable technique for quantile regression, i.e. the control-function estimator due to Lee (forthcoming, 2007). The findings are compared with earlier results based on different techniques, i.e. the instrumental-variable estimator due to Arias, Hallock and Sosa-Escudero (2001) and the standard exogeneity-based estimator due to Koenker and Bassett (1978).

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2828.

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Length: 17 pages
Date of creation: Jun 2007
Date of revision:
Publication status: published in: Applied Economics, 2010, 42 (28), 3685-3691
Handle: RePEc:iza:izadps:dp2828

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Keywords: schooling; wage inequality; quantile regression; endogeneity;

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References

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  1. Omar Arias & Walter Sosa-Escudero & Kevin F. Hallock, 2001. "Individual heterogeneity in the returns to schooling: instrumental variables quantile regression using twins data," Empirical Economics, Springer, Springer, vol. 26(1), pages 7-40.
  2. Corrado Andini, 2007. "The total impact of schooling on within-groups wage inequality in Portugal," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 15(2), pages 85-90.
  3. Sokbae 'Simon' Lee, 2004. "Endogeneity in quantile regression models: a control function approach," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP08/04, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  4. Corrado Andini, 2007. "Returns to education and wage equations: a dynamic approach," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 14(8), pages 577-579.
  5. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, Econometric Society, vol. 46(1), pages 33-50, January.
  6. Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, Elsevier, vol. 11(3), pages 355-371, June.
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Cited by:
  1. Biagetti, Marco & Scicchitano, Sergio, 2009. "Wage inequality and returns to schooling in Europe: a semi-parametric approach using EU-SILC data," MPRA Paper 19060, University Library of Munich, Germany.
  2. Kasey S. Buckles & Daniel M. Hungerman, 2013. "Season of Birth and Later Outcomes: Old Questions, New Answers," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 711-724, July.
  3. Jo�o 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. Andreas Behr & Ulrich Pötter, 2010. "What determines wage differentials across the EU?," Journal of Economic Inequality, Springer, Springer, vol. 8(1), pages 101-120, March.
  5. Aysit Tansel & Fatma Bircan, 2011. "Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis," Working Papers, Turkish Economic Association 2011/1, Turkish Economic Association.
  6. Rafal Kierzenkowski & Isabell Koske, 2012. "Less Income Inequality and More Growth – Are they Compatible? Part 8. The Drivers of Labour Income Inequality – A Literature Review," OECD Economics Department Working Papers 931, OECD Publishing.

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