Inter-Regional Wage Dispersion in Portugal

José Vieira, João Couto and Maria Teresa Tiago

No 1664, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper examines the size o inter-regional wage dispersion in Portugal. For this purpose, we estimate a Mincer-type human capital wage equation, including controls for a large number of regions, and calculate a weighted and adjusted standard deviation (WASD) of inter-regional wage differentials. The value is high and quite stable over time. The highest wages are found in the region of Lisbon. Moreover, the results are quite sensitive to inclusion of human capital and industry controls. A decomposition analysis reveals that differences average years of education and in the return to education across regions account for a significant fraction of observed wage differentials.

Keywords: regions; wages; human capital; Portugal (search for similar items in EconPapers)
JEL-codes: J31 R10 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2005-07
New Economics Papers: this item is included in nep-eec, nep-geo and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published - published in: Regional and Sectoral Economic Studies, 2006, 6 (1)

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Related works:
Journal Article: Inter-regional Wage Dispersion in Portugal (2006)
Working Paper: Inter-regional Wage Dispersion in Portugal (2005)
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