Does education reduce wage inequality? Quantile regressions evidence from fifteen European countries

Pedro Telhado Pereira and Pedro Martins

Nova SBE Working Paper Series from Universidade Nova de Lisboa, Nova School of Business and Economics

Abstract: We address the impact of education upon wage inequality by drawing on evidence from fifteen European countries, during a period ranging between 1980 and 1995. We focus on within-educational-levels wage inequality by estimating quantile regressions of Mincer equations and analysing the differences in returns to education across the wage distribution and across time. Four different patterns emerge: 1) a positive and increasing contribution of education upon within-levels wage inequality the case of Portugal; 2) a positive but stable role of education in terms of inequality Austria, Finland, France, Ireland, Netherlands, Norway, Spain, Sweden, Switzerland, UK; 3) a neutral role Denmark and Italy; and 4) a negative impact Germany and Greece. We thus find that in most countries dispersion in earnings increases with educational levels and that education is a risky investment. These results suggest a positive interaction between schooling and ability with respect to earnings.

Keywords: Returns to Education; earnings inequality; quantile regressions; ability; ducation systems; labour-market institutions (search for similar items in EconPapers)
JEL-codes: D31 I21 J24 J31 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

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Related works:
Working Paper: Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries (2002)
Working Paper: Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:unl:unlfep:wp379

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