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Within-groups wage inequality and schooling: further evidence for Portugal

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This article 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 latest available instrumental-variable technique for quantile regression, i.e. the control-function estimator due to Lee (2007). The findings are compared with earlier results based on different techniques, i.e. the instrumental-variable estimator due to Arias et al. (2001) and the standard exogeneity-based estimator due to Koenker and Bassett (1978).

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840802314564

Affiliations: Department of Management and Economics, University of Madeira, 9000-390 Funchal, Portugal,CEEAplA, Centre of Applied Economic Studies of the Atlantic, Portugal,IZA, Institute for the Study of Labor, D-53072 Bonn, Germany

Publication date: November 1, 2010

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