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Education and Gender Wage Differentials in Portugal: What Can We Learn From an Age Cohort Analysis?

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  • Pilar González

    ()
    (CETE, Faculdade de Economia, Universidade do Porto)

  • Maria Clementina Santos

    ()
    (CETE, Faculdade de Economia, Universidade do Porto)

  • Luís Delfim Santos

    ()
    (CEMPRE, Faculdade de Economia, Universidade do Porto)

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    Abstract

    Deep changes characterize the evolution of the Portuguese labor market concerning the average schooling of workers, particularly since the 1980s. The purpose of this paper is to investigate the consequences of those changes in the gender wage gap. In particular, we analyze and compare the way that this process has evolved in the groups of young workers and older workers. Our findings suggest that the major part of the pay gap refers to employer discrimination practices for both age group cohorts: in the case of the younger workers, discrimination plays an increasing role in explaining the wage gap whereas for the older workers discrimination remains stable overtime. Furthermore, the attributes related to the characteristics of jobs are the major sources of the explained pay gap. In particular, the different way men and women are distributed among the sectors of industry is the main reason of the gap for both cohorts.

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    File URL: http://www.fep.up.pt/investigacao/cete/papers/dp0701.pdf
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    Bibliographic Info

    Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series CEF.UP Working Papers with number 0701.

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    Length: 25 pages
    Date of creation: Jan 2007
    Date of revision:
    Handle: RePEc:por:cetedp:0701

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    Keywords: Labor market; discrimination; salary wage differentials;

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    References

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    1. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    2. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    3. Erica L. Groshen, 1991. "The Structure of the Female/Male Wage Differential: Is It Who You Are, What You Do, or Where You Work?," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 457-472.
    4. Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 1999. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," NBER Working Papers 7003, National Bureau of Economic Research, Inc.
    5. Pilar González & Maria Clementina Santos & Luís Delfim Santos, 2005. "The Gender Wage Gap in Portugal: Recent Evolution and Decomposition," CEF.UP Working Papers 0505, Universidade do Porto, Faculdade de Economia do Porto.
    6. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    7. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    8. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
    9. Anne Plasman & Robert Plasman & Michael Rusinek & François Rycx, 2002. "Indicators on gender pay equality," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 45(2), pages 11-40.
    10. Anne Plasman & Robert Plasman & Michael Rusinek & François Rycx, 2001. "Indicators on gender pay equality: the Belgian presidency's report," ULB Institutional Repository 2013/9805, ULB -- Universite Libre de Bruxelles.
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