Working Paper: CEPR ID: DP4355
Authors: Ana Rute Cardoso
Abstract: This study compares wage mobility in Portugal and the UK, replicating the work by Dickens (2000) and progressing to discuss the impact of differences in the institutional framework, which is more regulated and centralized in Portugal, with minimum wages, employment protection, and collective bargaining widely applied. Results indicate that both countries became more unequal and less mobile labour markets, having departed from similar levels in mid-80s. The evidence does not support the idea that a more regulated institutional framework reduces individual mobility within the wage distribution.
Keywords: Wage Dispersion; Wage Mobility
JEL Codes: J31; J60
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Institutional frameworks (D02) | Wage mobility (J62) |
| Minimum wage policy in Portugal (J38) | Wage compression at the lower end of the distribution (J31) |
| Wage compression at the lower end of the distribution (J31) | Higher mobility out of low wages (J62) |
| Institutional differences (D02) | Wage inequality (J31) |
| Differences in wage mobility trends (J62) | Institutional factors (D02) |
| Regulated and centralized institutional framework in Portugal (L59) | Wage mobility outcomes (J62) |
| Legal protections for low-wage workers in Portugal (J38) | Mobility outcomes for low-wage workers (J62) |