August 1999

IZA DP No. 53: Inter-industry Wage Dispersion in Portugal: high but falling

published as 'Inter-industry Wage Dispersion in Portugal' in: Empirica, 2000, 27 (4), 353-364

This paper examines the size of inter-industry wage dispersion in Portugal and compares with other countries. We find that the country has a high inter-industry wage inequality compared with the European standard. Nevertheless, the dispersion reduced over the 1980s and the early 1990s along a process of centralisation of the wage setting. This finding may add to the emerging notion that centralisation reduces inter-industry wage dispersion.