When supply meets demand: wage inequality in Portugal

IZA Journal of European Labor Studies

Table 5 Regression models for the college/noncollege log wage gap by experience group

	Potential experience groups
	All groups		0-9 years		10-19 years		20-29 years		30-39 years
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)
Own minus aggregate supply	-0.324	-0.323	-0.209	-0.254	-0.584	-0.548	0.132	0.059	0.427	0.200
	0.010	0.009	0.129	0.110	0.043	0.112	0.161	0.064	0.197	0.116
Aggregate supply	-0.578	-0.400	-0.614	-0.435	-0.459	-0.464	-0.242	-0.106	-0.163	-0.034
	0.105	0.107	0.187	0.176	0.064	0.068	0.308	0.125	0.085	0.054
Log real minimum wage		-0.174		-0.188		-0.016		-0.141		-0.130
		0.314		0.325		0.189		0.198		0.160
Natural unemployment rate		-0.036		-0.027		-0.004		-0.052		-0.027
		0.008		0.008		0.012		0.005		0.004
Time	0.048	0.042	0.044	0.038	0.040	0.041	0.035	0.033	0.040	0.030
	0.007	0.008	0.011	0.011	0.004	0.005	0.017	0.008	0.007	0.005
Constant	-0.734	0.543	-0.782	0.544	-0.325	-0.267	0.194	1.291	0.630	1.451
	0.284	1.107	0.585	1.109	0.168	0.665	0.847	0.731	0.260	0.562
No. of observations	96	96	24	24	24	24	24	24	24	24
R ²	0.882	0.906	0.738	0.848	0.972	0.972	0.903	0.987	0.969	0.991

Notes: Standard errors in italic. Each column presents an OLS regression of the fixed-weighted college wage premium on the indicated variables. The college/noncollege wage premium is calculated as the average for each potential experience group. The minimum wage is deflated by the consumer price index. Columns (1) and (2) also include dummy variables for the four potential experience groups used in the Table. The source for labor supply and wages is the Quadros de Pessoal, 1984-2009.