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Regions and Low-Wage Mobility in Portugal

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  • Paulo Madruga
  • José Vieira

Abstract

This paper examines the impact of regions on low wage incidence and mobility in Portugal. In particular, we intend to examine to what extent there are significant differences between the region of Lisbon and the rest of the country. The results indicate that, everything else the same, the region is an important determinant of the probability of the individual being found into the low wage class (defined as two-thirds of the median hourly wage), even in a small country like Portugal. It is also affects the probability of leaving low-pay. In particular, equally-skilled workers working in the region of Lisbon are less-likely to be low-paid than the other workers. They are also more likely to escape from the low-pay segment. Other variables of great importance on low pay determination and mobility, and in both regions, are the level of education of the workers, gender and the size of the firm.

Suggested Citation

  • Paulo Madruga & José Vieira, 2004. "Regions and Low-Wage Mobility in Portugal," ERSA conference papers ersa04p55, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa04p55
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    References listed on IDEAS

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    1. Mark B. Stewart & Joanna K. Swaffield, 1999. "Low Pay Dynamics and Transition Probabilities," Economica, London School of Economics and Political Science, vol. 66(261), pages 23-42, February.
    2. Lorenzo Cappellari, 2000. "Low‐wage mobility in the Italian labour market," International Journal of Manpower, Emerald Group Publishing Limited, vol. 21(3/4), pages 264-290, May.
    3. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
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    1. Vieira, J.A.C. & Couto, J.P.A. & Tiago, M.T.B., 2006. "Inter-regional Wage Dispersion in Portugal," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 6(1).
    2. Nuno Crespo & Nadia Simoes & Sandrina B. Moreira, 2014. "Gender differences in occupational mobility - evidence from Portugal," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(4), pages 460-481, July.
    3. Jose Antonio Cabral Vieira & Joao Pedro Couto & Maria Teresa Tiago, 2006. "Regional Differences in Returns to Education in Portugal," ERSA conference papers ersa06p44, European Regional Science Association.

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