Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36207
Authors: 
Centeno, Mário
Novo, Álvaro A.
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers 4592
Abstract: 
Wage inequality in Portugal increased over the last quarter of century. The period from 1982 to 1995 witnessed strong increases in both upper- and lower-tail inequality. A shortage of skills combined with skill-biased technological changes are at the core of this evolution. Since 1995, lower-tail inequality decreased, while upper-tail inequality increased at a slower rate. The supply of high-skilled workers more than doubled during this period, contributing significantly to the slowdown. Polarization of employment demand is the more credible explanation for the more recent evolution. As in other developed economies, for instance Germany and the United States, we show that institutions played a minor role in shaping changes in inequality.
Subjects: 
Inequality
polarization
supply
demand
institutions
JEL: 
J3
D3
O3
Document Type: 
Working Paper

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