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Regions and Low-Wage Mobility in Portugal

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Author Info
Paulo Madruga
José Vieira ()

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Abstract

This paper examines the impact of regions on low wage incidence and mobility in Portugal. In particular, we intend to examine to what extent there are significant differences between the region of Lisbon and the rest of the country. The results indicate that, everything else the same, the region is an important determinant of the probability of the individual being found into the low wage class (defined as two-thirds of the median hourly wage), even in a small country like Portugal. It is also affects the probability of leaving low-pay. In particular, equally-skilled workers working in the region of Lisbon are less-likely to be low-paid than the other workers. They are also more likely to escape from the low-pay segment. Other variables of great importance on low pay determination and mobility, and in both regions, are the level of education of the workers, gender and the size of the firm.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p55.

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Date of creation: Aug 2004
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Handle: RePEc:wiw:wiwrsa:ersa04p55

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  1. Stewart, Mark B & Swaffield, Joanna K, 1999. "Low Pay Dynamics and Transition Probabilities," Economica, London School of Economics and Political Science, vol. 66(261), pages 23-42, February. [Downloadable!] (restricted)
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  1. Jose Antonio Cabral Vieira & Joao Pedro Couto & Maria Teresa Tiago, 2006. "Regional Differences in Returns to Education in Portugal," ERSA conference papers ersa06p44, European Regional Science Association. [Downloadable!]
  2. José António Cabral Vieira & João Pedro Almeida Couto & Maria Teresa Borges Tiago, 2005. "Inter-Regional Wage Dispersion in Portugal," IZA Discussion Papers 1664, Institute for the Study of Labor (IZA). [Downloadable!]
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