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

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Author Info
Corrado Andini () (University of Madeira, CEEAplA and IZA)

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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 exogeneitybased estimator due to Koenker and Bassett (1978).

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Publisher 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:
Handle: RePEc:iza:izadps:dp2828

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

Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
C29 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Other

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References listed on IDEAS
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  1. Corrado Andini, 2008. "The total impact of schooling on within-groups wage inequality in Portugal," Applied Economics Letters, Taylor and Francis Journals, vol. 15(2), pages 85-90. [Downloadable!] (restricted)
  2. 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)
  3. Corrado Andini, 2007. "Returns to education and wage equations: a dynamic approach," Applied Economics Letters, Taylor and Francis Journals, vol. 14(8), pages 577-579. [Downloadable!] (restricted)
  4. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January. [Downloadable!] (restricted)
  5. 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, vol. 26(1), pages 7-40. [Downloadable!] (restricted)
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