IDEAS home Printed from https://ideas.repec.org/p/fda/fdaddt/2000-10.html
   My bibliography  Save this paper

Integration and Inequality: Lessons from the Accessions of Portugal and Spain to the EU

Author

Listed:
  • Olga Cantó
  • Juan F. Jimeno
  • Ana Rute Cardoso
  • Mario Izquierdo
  • Carlos Farinha Rodrigues

Abstract

This paper provides some evidence on the distributive consequences of economic integration by analyzing the Portuguese and Spanish experiences with EU accession. Despite the coincidence in the moment of accession to EU and other institutional similarities, inequality trends have been different in the two countries in the last two decades. Some studies using microeconomic household data have documented a substantial reduction of household income inequality both in Portugal and Spain throughout the 1980s. However, during the first half of the 1990s, household income inequality has risen in Portugal, while it has remained more or less constant in Spain. As for wage inequality, there are also interesting differences both in the wage structure and recent trends in both countries. The paper is in two parts: the first part (sections 2 and 3) describes the most relevant facts regarding macroeconomic evolutions and inequality trends in both countries. In Section 2 we briefly describe the macroeconomic performance of Portugal and Spain before and after accession to the EU by documenting the differences between the two countries in relevant variables for the subsequent analysis, such as the level of productivity, the employment structure, the degree of openness, trade patterns, FDI inflows, and the transfers received by means of the EU Structural Funds. In section 3 we report trends in income and wage inequality during the 1980-95 period and discuss the main factors behind these trends. The second part of the report (sections 4 and 5) analyzes the microeconomic evidence on wage and employment adjustments after accession to the EU in both Portugal and Spain. In section 4 we look at how individual and jobs characteristics are remunerated in both countries by estimating wage regressions with microeconomic data. In Portugal, where microeconomic data are available for different years, we also look at the changes in the remuneration of those characteristics between 1985 and 1995. In Section 5 we focus on the changes in employment and wage shares of different types of workers (classified by educational attaintments and occupations) in different industries. First, we document the sectoral distribution of these changes and, secondly, we relate within-firm changes to some firms' characteristics like foreign and domestic ownership and the proportion of sales and inputs which are exported and imported. Finally, Section 6 concludes.

Suggested Citation

  • Olga Cantó & Juan F. Jimeno & Ana Rute Cardoso & Mario Izquierdo & Carlos Farinha Rodrigues, "undated". "Integration and Inequality: Lessons from the Accessions of Portugal and Spain to the EU," Working Papers 2000-10, FEDEA.
  • Handle: RePEc:fda:fdaddt:2000-10
    as

    Download full text from publisher

    File URL: http://documentos.fedea.net/pubs/dt/2000/dt-2000-10.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Caporale, G. M. & Pittis, N., 1998. "Cointegration and predictability of asset prices1," Journal of International Money and Finance, Elsevier, vol. 17(3), pages 441-453, June.
    2. King, Mervyn A & Wadhwani, Sushil, 1990. "Transmission of Volatility between Stock Markets," Review of Financial Studies, Society for Financial Studies, vol. 3(1), pages 5-33.
    3. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    4. Zivot, Eric & Andrews, Donald W K, 2002. "Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 25-44, January.
    5. Arshanapalli, Bala & Doukas, John, 1993. "International stock market linkages: Evidence from the pre- and post-October 1987 period," Journal of Banking & Finance, Elsevier, vol. 17(1), pages 193-208, February.
    6. Banerjee, Anindya & Lumsdaine, Robin L & Stock, James H, 1992. "Recursive and Sequential Tests of the Unit-Root and Trend-Break Hypotheses: Theory and International Evidence," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(3), pages 271-287, July.
    7. Hamori, Shigeyuki & Tokihisa, Akira, 1997. "Testing for a unit root in the presence of a variance shift1," Economics Letters, Elsevier, vol. 57(3), pages 245-253, December.
    8. Perron, Pierre & Vogelsang, Timothy J, 1992. "Nonstationarity and Level Shifts with an Application to Purchasing Power Parity," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(3), pages 301-320, July.
    9. John Ammer & Jianping Mei, 1993. "Measuring international economic linkages with stock market data," International Finance Discussion Papers 449, Board of Governors of the Federal Reserve System (U.S.).
    10. Gregory, Allan W. & Hansen, Bruce E., 1996. "Residual-based tests for cointegration in models with regime shifts," Journal of Econometrics, Elsevier, pages 99-126.
    11. Dwyer, Gerald Jr. & Wallace, Myles S., 1992. "Cointegration and market efficiency," Journal of International Money and Finance, Elsevier, vol. 11(4), pages 318-327, August.
    12. Gregory, Allan W. & Hansen, Bruce E., 1996. "Residual-based tests for cointegration in models with regime shifts," Journal of Econometrics, Elsevier, pages 99-126.
    13. Janakiramanan, Sundaram & Lamba, Asjeet S., 1998. "An empirical examination of linkages between Pacific-Basin stock markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 8(2), pages 155-173, June.
    14. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    15. Ammer, John & Mei, Jianping, 1996. " Measuring International Economic Linkages with Stock Market Data," Journal of Finance, American Finance Association, vol. 51(5), pages 1743-1763, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Budria, Santiago, 2006. "Education and Inequality: Evidence from Spain," MPRA Paper 1098, University Library of Munich, Germany.
    2. Alvaredo, Facundo, 2009. "Top incomes and earnings in Portugal 1936-2005," Explorations in Economic History, Elsevier, vol. 46(4), pages 404-417, October.
    3. Budria, Santiago & Nunes, Celso, 2005. "Education and Wage Inequality in Portugal," MPRA Paper 1099, University Library of Munich, Germany.
    4. Juan Ramón García, "undated". "La desigualdad salarial en España. Efectos de un diseño muestral complejo," Working Papers 2003-26, FEDEA.
    5. Facundo Alvaredo, 2008. "Top incomes and earnings in Portugal 1936-2004," PSE Working Papers halshs-00586795, HAL.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fda:fdaddt:2000-10. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmen Arias). General contact details of provider: http://www.fedea.net .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.