Please use this identifier to cite or link to this item: http://hdl.handle.net/10174/11972

Title: Decomposition of regional wage differences along the wage distribution in Portugal: the importance of covariates
Authors: Galego, Aurora
Pereira, João
Keywords: regions
wage differentials
wage decompositions
unconditional quantile regression
recentred influence function
Issue Date: 2014
Publisher: Pion
Citation: Galego A, Pereira J, 2014, "Decomposition of regional wage differences along the wage distribution in Portugal: the importance of covariates" Environment and Planning A 46(10) 2514 – 2532
Abstract: Unlike previous studies, in this paper we estimate the contribution of covariates for the regional wage decomposition components along the wage distribution employing a method first described in 2009 by S Firpo, N Fortin, and T Lemieu (Econometrica 77 953–973). We consider the case of Portugal, a country with persistent and large regional wage gaps. We find that education, occupation, and firm size are the most important factors in explaining the growing importance of the composition effect. The wage structure effect, in turn, is mainly determined by differences in reward for experience and tenure. Moreover, we conclude that the importance of these covariates for both effects is not equal along the wage distribution.
URI: http://hdl.handle.net/10174/11972
Type: article
Appears in Collections:ECN - Publicações - Artigos em Revistas Internacionais Com Arbitragem Científica
CEFAGE - Publicações - Artigos em Revistas Internacionais Com Arbitragem Científica

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