Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries

By P. Pereira, Pedro S. Martins. Social Science Research Network, 2000

110 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/790c9d5718f464eb50243e04f2eaf83eddf85c3e

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Citations in the corpus

Gender wage discrimination at quantiles (2005, methodology): “Pereira and Martins (2000) used the same technique to study”
Analyzing Semiparametrically the Trends in the Gender Pay Gap - The Example of Spain (2008, background): “Relevant papers include Buchinsky (1998), Pereira and Martins (2000), Melly (2005), Garcia et al (2001) and Sakellariou (2004) among others.”