Skip to main content

Table 3 Observed and composition-constant changes in overall and residual inequality, log points ×100

From: When supply meets demand: wage inequality in Portugal

 

Overall inequality

 

Residual inequality

 

1984-1995

1995-2009

1984-2009

 

1984-1995

1995-2009

1984-2009

    

Δ90/50

   
    

Males

   

Observed

18.3

15.2

33.4

 

8.9

10.1

19.0

1984 composition

12.8

-5.1

7.7

 

8.8

2.6

11.4

1995 composition

12.0

-7.1

4.9

 

8.0

2.8

10.8

2009 composition

19.9

0.8

20.8

 

10.2

4.5

14.7

    

Females

   

Observed

23.4

9.9

33.3

 

8.4

4.2

12.6

1984 composition

10.9

-24.7

-13.9

 

5.3

-10.1

-4.8

1995 composition

17.3

-28.1

-10.8

 

6.6

-11.3

-4.7

2009 composition

25.3

1.8

27.1

 

12.2

-5.6

6.6

    

Δ50/10

   
    

Males

   

Observed

8.9

-5.6

3.3

 

6.9

-1.9

5.0

1984 composition

5.0

-14.6

-9.6

 

5.7

-12.1

-6.3

1995 composition

6.4

-16.1

-9.7

 

5.5

-10.7

-5.1

2009 composition

8.7

-17.4

-8.7

 

8.0

-10.7

-2.7

    

Females

   

Observed

3.3

-2.5

0.8

 

5.5

2.7

8.2

1984 composition

-1.5

-12.6

-14.1

 

1.3

-10.5

-9.2

1995 composition

-3.4

-15.3

-18.7

 

3.5

-11.0

-7.5

2009 composition

2.1

-28.7

-26.6

 

9.6

-14.5

-5.0

  1. Notes: Tabulated statistics present observed and composition-constant overall and residual inequality from Quadros de Pessoal, 1984-2009. Residual inequality is obtained from a regression of log hourly wages on a full set of experience dummies, dummies for 5 discrete schooling categories, and a full set of interactions among the schooling dummies and a quartic in experience. All models are estimated separately by gender. See the Appendix for further details in the compositional adjustment method. In relation to Figure 3, the values reported in this table are obtained by subtracting pairs of counterfactual curves vertically. For instance, for overall male upper-tail inequality, the price effect induced by wage changes from 1995 to 2009 with 1984 composition, -5.1 log points, is obtained by subtracting the values in 1984 of the 2009 counterfactual curve from the 1995 counterfactual curve.