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Inter-industry Wage Premia in Portugal: Evidence from EU-SILC data

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  • Biagetti, Marco
  • Scicchitano, Sergio

Abstract

In this paper we investigate whether inequality in the inter-industry wage premia may be explained by unobserved differences in workers’ educational skills. We use the 2007 EU-SILC data set for Portugal, a nation which can be considered a case-study, due to its high inter-industry wage dispersion. Applying both OLS and quantile regression techniques, our results suggest that this unobserved heterogeneity is not a relevant matter in the wage premia determination. We thus corroborate the previous empirical contribution to Economic Letters performed by Martins (2004).

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 19076.

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Date of creation: 08 Dec 2009
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Handle: RePEc:pra:mprapa:19076

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Keywords: Returns to education; inter-industry wage inequality; Quantile regression; Portugal;

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  1. Robert Gibbons & Lawrence F. Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," NBER Working Papers 3182, National Bureau of Economic Research, Inc.
  2. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
  3. Martins, Pedro S., 2004. "Industry wage premia: evidence from the wage distribution," Economics Letters, Elsevier, vol. 83(2), pages 157-163, May.
  4. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  5. Joop Hartog & Pedro Pereira & José Vieira, 2000. "Inter-industry Wage Dispersion in Portugal," Empirica, Springer, vol. 27(4), pages 353-364, December.
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