Regional Differences in Returns to Education in Portugal
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.
|Date of creation:||Aug 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
- David Card, 1994.
"Earnings, Schooling, and Ability Revisited,"
NBER Working Papers
4832, National Bureau of Economic Research, Inc.
- Fitzenberger, Bernd & Kurz, Claudia, 1997.
"New insights on earnings trends across skill groups and industries in West Germany,"
38, University of Konstanz, Center for International Labor Economics (CILE).
- Bernd Fitzenberger & Claudia Kurz, 2003. "New insights on earnings trends across skill groups and industries in West Germany," Empirical Economics, Springer, vol. 28(3), pages 479-514, July.
- Koenker, Roger & Bassett, Gilbert, Jr, 1982. "Robust Tests for Heteroscedasticity Based on Regression Quantiles," Econometrica, Econometric Society, vol. 50(1), pages 43-61, January.
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002.
"Returns to investment in education : a further update,"
Policy Research Working Paper Series
2881, The World Bank.
- George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Paulo Madruga & José Vieira, 2004. "Regions and Low-Wage Mobility in Portugal," ERSA conference papers ersa04p55, European Regional Science Association.
- Gilles Duranton & Vassilis Monastiriotis, 2002. "Mind the Gaps: The Evolution of Regional Earnings Inequalities in the U.K., 1982-1997," Journal of Regional Science, Wiley Blackwell, vol. 42(2), pages 219-256.
- DuMond J.M. & Hisch, B.T. & Macpherson, D.A., 1996.
"Wage Differentials Across Labor Markets and Workers: Does Cost of Living Matter?,"
1996_08_01, Department of Economics, Florida State University.
- Dumond, J Michael & Hirsch, Barry T & Macpherson, David A, 1999. "Wage Differentials across Labor Markets and Workers: Does Cost of Living Matter?," Economic Inquiry, Western Economic Association International, vol. 37(4), pages 577-98, October.
- Mata, Jose & Machado, Jose A. F., 1996. "Firm start-up size: A conditional quantile approach," European Economic Review, Elsevier, vol. 40(6), pages 1305-1323, June.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa06p44. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.