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Inter-industry Wage Premia in Portugal: Evidence from EU-SILC data

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  • Biagetti, Marco
  • Scicchitano, Sergio

Abstract

In this paper we investigate whether inequality in the inter-industry wage premia may be explained by unobserved differences in workers’ educational skills. We use the 2007 EU-SILC data set for Portugal, a nation which can be considered a case-study, due to its high inter-industry wage dispersion. Applying both OLS and quantile regression techniques, our results suggest that this unobserved heterogeneity is not a relevant matter in the wage premia determination. We thus corroborate the previous empirical contribution to Economic Letters performed by Martins (2004).

Suggested Citation

  • Biagetti, Marco & Scicchitano, Sergio, 2009. "Inter-industry Wage Premia in Portugal: Evidence from EU-SILC data," MPRA Paper 19076, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19076
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    References listed on IDEAS

    as
    1. Robert Gibbons & Lawrence Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(3), pages 515-535.
    2. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    3. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-293, March.
    4. Joop Hartog & Pedro Pereira & José Vieira, 2000. "Inter-industry Wage Dispersion in Portugal," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 27(4), pages 353-364, December.
    5. Martins, Pedro S., 2004. "Industry wage premia: evidence from the wage distribution," Economics Letters, Elsevier, vol. 83(2), pages 157-163, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Returns to education; inter-industry wage inequality; Quantile regression; Portugal;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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