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Inter-Regional Wage Differentials in Portugal: An Analysis Across the Wage Distribution

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  • João Pereira
  • Aurora Galego

Abstract

Pereira J. and Galego A. Inter-regional wage differentials in Portugal: an analysis across the wage distribution, Regional Studies . Typically, studies on regional wage differentials are based on ordinary least squares (OLS) estimates. Quantile regression is an alternative approach which allows these differences to be studied across the whole wage distribution. In this study, the quantile regression framework is considered for the analysis of regional wage differences in Portugal. The findings reveal significant differences in wage equations coefficients between regions for the various quantiles. Furthermore, it is concluded that the regional wage differentials and the components explained by differences in endowments and differences in returns increase across the whole wage distribution.

Suggested Citation

  • João Pereira & Aurora Galego, 2014. "Inter-Regional Wage Differentials in Portugal: An Analysis Across the Wage Distribution," Regional Studies, Taylor & Francis Journals, vol. 48(9), pages 1529-1546, September.
    • Handle: RePEc:taf:regstd:v:48:y:2014:i:9:p:1529-1546
    DOI: 10.1080/00343404.2012.750424
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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
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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