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Regional Differences in Returns to Education in Portugal

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  • Jose Antonio Cabral Vieira
  • Joao Pedro Couto
  • Maria Teresa Tiago

Abstract

This paper analyses differences in the return to education in Portugal across regions. For this purpose, we use an extended Mincer-type wage equation. OLS regression results indicate that differences in the rewards to education are substantially different across regions. In particular, they are much higher in Lisbon than in other regions. Since the average level of education in Lisbon is much higher in Lisbon than elsewhere such a differential is attributed to the fact that the demand for educated labour is much higher in Lisbon, likely due to differences in technology. A quantile regression analysis reveals that the return to education is not constant across the whole conditional wage distribution. This is valid for the 18 regions examined, although once again the impact of education on wages is higher in Lisbon regardless the quantile we examine.

Suggested Citation

  • 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.
    • Handle: RePEc:wiw:wiwrsa:ersa06p44
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    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa06/papers/44.pdf
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    References listed on IDEAS

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    Cited by:

    1. Peter Huber, 2014. "Are Commuters in the EU Better Educated than Non-commuters but Worse than Migrants?," Urban Studies, Urban Studies Journal Limited, vol. 51(3), pages 509-525, February.

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