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IZA Discussion Paper No. 2828
June 2007
Within-Groups Wage Inequality and Schooling: Further Evidence for Portugal

published in: Applied Economics, 2010, 42 (28), 3685-3691

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).

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Mark Fallak
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+352 585-855-526
World of Labour
Olga Nottmeyer
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+352 585-855-501
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Christina Gathmann
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