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A Quantile Regression Analysis of Wages in Panama

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  • Evangelos M. Falaris

Abstract

Differences in the effects of worker characteristics on wages in Panama at different points of the conditional wage distribution are investigated. Public sector employment increases wages relatively more at lower quantiles. Within the public sector, employment in that sector increases wages of the median worker and reduces wage inequality. Presence of a labor union increases relatively more private sector wages at lower quantiles. Unions reduce wage inequality within the union private sector and increase average wages within that sector. In the public sector, the presence of a labor union increases wages of men at lower quantiles at a lower rate than in the private sector. Self‐employment decreases wages at lower quantiles and increases wages at higher quantiles. Urban location affects wages in a U‐shaped pattern as one moves from lower to higher quantiles. Rates of return to experience are higher for men at higher quantiles. Experience increases men's wage inequality.

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  • Evangelos M. Falaris, 2008. "A Quantile Regression Analysis of Wages in Panama," Review of Development Economics, Wiley Blackwell, vol. 12(3), pages 498-514, August.
    • Handle: RePEc:bla:rdevec:v:12:y:2008:i:3:p:498-514
    DOI: 10.1111/j.1467-9361.2008.00442.x
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    10. Singhari, Smrutirekha & Madheswaran, S., 2016. "Changing rates of return to education in India: Evidence from NSS data," Working Papers 358, Institute for Social and Economic Change, Bangalore.
    11. Javier Alejo & Leonardo Gasparini & Gabriel Montes-Rojas & Walter Sosa-Escudero, 2024. "A decomposition method to evaluate the ‘paradox of progress’, with evidence for Argentina," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(2), pages 453-472, June.
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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