Brown Bag seminar in Economics | Manuel Cruz
Welcome to the Brown Bag Seminar in Economics organized by the Department of Economics, SSE. The seminar speaker is Manuel Cruz, SSE who will present on "Wage Inequality in Portugal: Anatomy of a Fall".
Abstract
Wage inequality in Portugal fell substantially since 2005, in contrast with the patterns observed in other advanced economies. Using a matched employer-employee dataset spanning the entire set of workers in the portuguese private sector, we investigate the determinants of this convergence and the role played by firms. We document that 80% of the drop in wage variation was driven by a reduction of between-firms inequality. At the same time, we find that wage variance fell along the entire distribution of workers, while the firm pay distribution compressed mostly at the bottom 50%. Estimating an AKM model, we find that 34% of the total decrease in wage variance can be accounted for by a reduction of the variance of worker effects, 20% by a reduction of the variance of firm effects and 24% by a reduction of the degree of sorting of high pay workers to high pay firms. We then discuss the potential role that minimum wage hikes might have played.
Manuel Cruz is a Ph.D. student at SSE, in the Department of Economics.
This seminar takes place at Stockholm School of Economics, Sveavägen 65, in room A750.
Please contact kathrine.abelson@hhs.se if you have any questions.