Browsing by Author "Espiga, Francisco Daniel Baptista"
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- Wage inequality : trends and drivers in PortugalPublication . Espiga, Francisco Daniel Baptista; Silva, Joana Cristina Gonçalves daThis thesis examines the evolution of wage inequality and its potential drivers, using harmonized household surveys and longitudinal matched employer-employee data from Portugal. Wage inequality was relatively stable until 2013 and has fallen since then. Changes in the variance of wages across workers with different skills and sector-occupations contributed to the change in wage inequality. In particular, the reduction in the education and experience premiums and the compression of wages across sector-occupations, played a major role over the past years. Nevertheless, a significant part of the change in inequality occurred among workers with similar skills and sector-occupations. Evidence based on additive worker and firm fixed effects models shows that heterogeneity across firms’ pay premiums reduced wage inequality. In contrast, increased heterogeneity across workers contributed to the relative stability of wage inequality during 2004-13. The evidence also suggests that wage dispersion within firms was relatively constant over time, and most of the registered changes were associated with changes in the wage dispersion between firms. Finally, the evolution of wage inequality differed across business cycles. During the crisis period of 2009-13, wage decreases across all wage percentiles led to a relatively stable inequality trajectory. During the non-crisis period, wage improvements among low-wage sectors and occupations and deterioration among high-wage sectors and occupations led to a gradual reduction in wage inequality