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Labour Market Returns and Wage Inequality: New Evidence for Europe


  • Tiago Neves Sequeira

    () (Dep. de Gest?o e Economia, Universidade da Beira Interior and CEFAGE-UBI, Estrada do Sineiro, Portugal)

  • Marcelo Santos

    (Dep. de Gest?o e Economia, Universidade da Beira Interior and CEFAGE-UBI, Estrada do Sineiro, Portugal)


We study the relationship between returns to education and the wage distribution in Europe and we find evidence for a new fact: A hump-shaped relationship between returns and the wage distribution. This hump-shaped relationship between returns to education and the wage distribution means that investments on education contributes to increase inequality between the lower bound of the wage distribution and the median (roughly) but for the richer part of the wage distribution, education tends to decrease wage inequality. There is also evidence of a non-monotonous relationship between returns to tenure and gender, on one side, and the wage distribution, on the other side.

Suggested Citation

  • Tiago Neves Sequeira & Marcelo Santos, 2015. "Labour Market Returns and Wage Inequality: New Evidence for Europe," Research in Applied Economics, Macrothink Institute, vol. 7(3), pages 31-45, September.
  • Handle: RePEc:mth:raee88:v:7:y:2015:i:3:p:31-45

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    References listed on IDEAS

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    3. Bouteldja, Abdelnacer & Benamar, Abdelhak & Maliki, Samir, 2013. "The Black Market Exchange Rate and Demand for Money in Algeria," MPRA Paper 75280, University Library of Munich, Germany.
    4. Blejer, Mario I., 1978. "Black-market exchange-rate expectations and the domestic demand for money : Some empirical results," Journal of Monetary Economics, Elsevier, vol. 4(4), pages 767-773, November.
    5. Bahmani-Oskooee, Mohsen & Tanku, Altin, 2006. "Black market exchange rate, currency substitution and the demand for money in LDCs," Economic Systems, Elsevier, vol. 30(3), pages 249-263, October.
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