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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.