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Decomposition of Regional Wage Differences Along the Wage Distribution in Portugal: the Importance of Covariates

Aurora Galego and João Pereira

CEFAGE-UE Working Papers from University of Evora, CEFAGE-UE (Portugal)

Abstract: Unlike previous studies, in this paper we estimate the contribution of covariates for the regional wage decomposition components along the wage distribution employing Firpo et al. (2009) method. 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 to explain the growing importance of the composition effect. The wage structure effect, in turn, is mainly determined by differences in rewards to experience and tenure. Moreover, we conclude that the importance of these covariates for both effects is not equal along the wage distribution.

Keywords: Regions; Wage differentials; Wage decompositions; Unconditional quantile regression; Recentered influence function. (search for similar items in EconPapers)
JEL-codes: C21 J31 J38 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2013
New Economics Papers: this item is included in nep-lab, nep-lma, nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: Decomposition of Regional Wage Differences Along the Wage Distribution in Portugal: The Importance of Covariates (2014) Downloads
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