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Wage Mobility: Do Institutions Make a Difference? A Replication Study Comparing Portugal and the UK

  • Cardoso, Ana Rute


    (IAE Barcelona (CSIC))

This study compares wage mobility in Portugal and the UK, replicating the work by Dickens (2000) and progressing to discuss the impact of differences in the institutional framework, which is more regulated and centralized in Portugal, with minimum wages, employment protection, and collective bargaining widely applied. Results indicate that both countries became more unequal and less mobile labour markets, having departed from similar levels in mid-80s. The evidence does not support the idea that a more regulated institutional framework reduces individual mobility within the wage distribution.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1086.

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Length: 27 pages
Date of creation: Mar 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1086
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  1. Machin, Stephen, 1996. "Wage Inequality in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 47-64, Spring.
  2. Moshe Buchinsky & Jennifer Hunt, 1996. "Wage Mobility in the United States," NBER Working Papers 5455, National Bureau of Economic Research, Inc.
  3. Cardoso, Ana Rute & Portugal, Pedro, 2004. "Bargained Wages, Wage Drift and the Design of the Wage-Setting System," CEPR Discussion Papers 4405, C.E.P.R. Discussion Papers.
  4. A. R. Cardoso, 2000. "Wage differentials across firms: an application of multilevel modelling," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(4), pages 343-354.
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