Within-Groups Wage Inequality and Schooling: Further Evidence for Portugal

17 Pages Posted: 1 Jul 2007

See all articles by Corrado Andini

Corrado Andini

IZA Institute of Labor Economics

Date Written: June 2007

Abstract

This paper provides further evidence on the positive impact of schooling on within-groups wage dispersion in Portugal, using data on male workers from the 2001 wave of the European Community Household Panel. The issue of schooling endogeneity is taken into account by using the newest available instrumental-variable technique for quantile regression, i.e. the control-function estimator due to Lee (forthcoming, 2007). The findings are compared with earlier results based on different techniques, i.e. the instrumental-variable estimator due to Arias, Hallock and Sosa-Escudero (2001) and the standard exogeneity-based estimator due to Koenker and Bassett (1978).

Keywords: endogeneity, quantile regression, schooling, wage inequality

JEL Classification: I21, J31, C29

Suggested Citation

Andini, Corrado, Within-Groups Wage Inequality and Schooling: Further Evidence for Portugal (June 2007). IZA Discussion Paper No. 2828. Available at SSRN: https://ssrn.com/abstract=997257

Corrado Andini (Contact Author)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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