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Regions and Low-Wage Mobility in Portugal, 1996-2000

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  • Vieira, J.A.C.

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  • Madruga, P.

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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.

Suggested Citation

  • Vieira, J.A.C. & Madruga, P., 2004. "Regions and Low-Wage Mobility in Portugal, 1996-2000," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 4(2).
  • Handle: RePEc:eaa:eerese:v:4:y2004:i:4_10
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    File URL: http://www.usc.es/economet/reviews/eers423.pdf
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    References listed on IDEAS

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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.
    2. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
    3. Lorenzo Cappellari, 1999. "Low-Wage Mobility in the Italian Labour Market," The Warwick Economics Research Paper Series (TWERPS) 531, University of Warwick, Department of Economics.
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    Cited by:

    1. Nuno Crespo & Nadia Simoes & Sandrina B. Moreira, 2014. "Gender differences in occupational mobility - evidence from Portugal," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(4), pages 460-481, July.

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