scholarly journals Human Capital Disparities and Earnings Inequality in The Portuguese Private Labour Market

Author(s):  
Derick R. C. Almeida ◽  
João A. S. Andrade ◽  
Adelaide Duarte ◽  
Marta Simões

AbstractThis paper examines human capital inequality and how it relates to earnings inequality in Portugal using data from Quadros de Pessoal for the period 1986–2017. The objective is threefold: (i) show how the distribution of human capital has evolved over time; (ii) investigate the association between human capital inequality and earnings inequality; and (iii) analyse the role of returns to schooling, together with human capital inequality, in the explanation of earnings inequality. Our findings suggest that human capital inequality, computed based on the distribution of average years of schooling of employees working in the Portuguese private labour market, records a positive trend until 2007 and decreases from this year onwards, suggesting the existence of a Kuznets curve of education relating educational attainment levels and education inequality. Based on the decomposition of a Generalized Entropy index (Theil N) for earnings inequality, we observe that inequality in the distribution of human capital plays an important role in the explanation of earnings inequality, although this role has become less important over the last decade. Using Mincerian earnings regressions to estimate the returns to schooling together with the Blinder-Oaxaca decomposition of real hourly earnings we confirm that there are two important forces associated with the observed decrease in earnings inequality: a reduction in education inequality and compressed returns to schooling, mainly in tertiary education.

2020 ◽  
Vol 66 (1) ◽  
pp. 33-59
Author(s):  
Arjan Non

Abstract Using data from the German Socio-Economic Panel, I examine the relation between workers’ reciprocal attitudes, as measured in 2005 and 2010, and participation in work-related training courses in 2007 and 2013, respectively. Theory predicts that employers find it more profitable to invest in human capital of workers who have positively reciprocal attitudes, because they are more likely to return their employer’s kindness with higher effort and/or loyalty. The findings are mixed, depending on the survey year. I find that positively reciprocal workers are more likely to participate in employer-financed training in 2007, in particular when training is general. Also, consistent with theoretical expectations, I do not find a relation between workers’ reciprocal attitudes and participation in training that is not financed by the employer. However, workers’ reciprocal attitudes are not related to training participation in 2013. A possible explanation is that employers use training to induce reciprocal feelings in a slack labour market only. (JEL codes: M53 and D91).


2020 ◽  
Vol 67 (3) ◽  
pp. 333-360
Author(s):  
Marta Simões ◽  
Adelaide Duarte ◽  
João Andrade

This paper examines employees? earnings inequality in Portugal for 1986-2017 using data from the Personnel Records database. Our objective is twofold: (a) characterize earnings inequality by comparing representative distributions, before and after the great crisis; and (b) investigate the role played by the business cycle on the behaviour of earnings inequality by estimating Autoregressive Distributed Lag (ADL) models. To identify trends and variations along the trend in earnings inequality we use cardinal measures and the coefficient of variation. We inspect the characteristics of earnings distributions in terms of moments (mean and median) and polarization (using relative distributions analysis). The main findings are: (1) earnings inequality shows a positive trend (except during the great crisis); (2) polarization is present in every year, with lower polarisation prevailing over upper polarization, both evolving at different paces (very fast 1989-2002; slower pace 2002-2008; negative growth 2008-2017); (3) the business cycle relationship with earnings inequality is negative.


2020 ◽  
Vol 25 (6) ◽  
pp. 537-560
Author(s):  
Inma Martínez-Zarzoso ◽  
Jennifer Phillips

AbstractThis paper contributes to the literature on the determinants of environmental standards by studying the role of income inequality and freedom of the press. Given that evidence of the environmental Kuznets curve has only been found for some countries, it is thus crucial to investigate whether other factors besides income per capita levels may be affecting countries' decisions to pass environmentally-friendly legislation. We investigate the effects that inequality and freedom of the press have on environmental stringency for a sample of OECD and BRIICS countries and a global sample of 82 countries using data over the period 1994–2015. We hypothesize that the more unequal a society is, and the greater the oppression of the press is, the less stringent environmental policies are. The results partially confirm our hypothesis. In particular, lack of press freedom is negatively correlated with environmental stringency, whereas inequality shows a non-linear effect only for non-high-income countries.


Ekonomika ◽  
2009 ◽  
Vol 87 ◽  
pp. 90-106
Author(s):  
Laima Okunevičiūtė Neverauskienė ◽  
Boguslavas Gruževskis

The article analyses the problem of human/intellectual capital in the context of the integration of an individual into the labour market, the role of human capital in the activity of enterprises (organizations). According to the information of the Department of Statistics on adult education,and data of sociological research (results of the research of employers and graduates working in their enterprises) the development of human capital, the need and the investment possibilities are assessed in Lithuania.


2017 ◽  
Vol 36 (2) ◽  
pp. 181-200 ◽  
Author(s):  
Marco Percoco

The role of wealth inequality for local development has long been neglected, although some literature has pointed out its relevance in explaining entrepreneurial and education investment. Among the typologies of assets composing individuals’ wealth, land is of paramount importance in underdeveloped economies specialised in agriculture. Land reforms in terms of redistribution of land ownership are hence expected to boost development through an increase in entrepreneurship rate and human capital stock. In this paper, we consider land reform in Italy, which took place in the 1950s in specific areas across the country. By adopting an Oaxaca-Blinder regression method and using data at a city level on the implementation of the reform for Puglia–Basilicata–Molise in the South of Italy and, as robustness checks, for Maremma in the Centre and Delta del Po in the North of Italy, we have found a positive impact of land redistribution on human capital accumulation and a less significant impact on employment and firm location.


2005 ◽  
Vol 10 (3) ◽  
pp. 1-17 ◽  
Author(s):  
Nabil Khattab

This paper focuses on the role of ethnicity and class in generating earnings inequality in Israel. Unlike previous studies on inequality of opportunities in Israel, in this paper I compare the earnings of five ethnic groups: European Jews (Ashkenazi), Asian-African Jews (Sephardi), Muslim Palestinians, Christian Palestinians and Druze Palestinians. In addition, both men and women are taken into account. The analysis, which is based on data obtained from the 1983 and 1995 Israeli population censuses, has revealed that in Israel, class variations resulting from the differentiation of employment contracts in the labour market, appear to have played a much more important role over time in producing earnings inequality. However, at the same time, it was found that class in this context is highly related to ethnicity, thereby suggesting that class and ethnicity are interwoven. While it seemed that to some extent, class plays a similar role among men and women, the role of ethnicity among men was much more central than it was among women, in the allocation of people into class positions.


2008 ◽  
Vol 4 (2) ◽  
pp. 133-146
Author(s):  
Suchitra S Kumar

The human capital approach to the gender disparity is not the only approach available. This paper compares and contrasts the two diverse approaches to understand the issues related to human capital formation in women. These approaches are the patriarchal approach and the human capital approach. The patriarchy approach highlights the role of social structures and power relationships in society, while the human capital approach highlights the importance of differential human capital endowments in explaining differences in labour market earnings. The two approaches are not mutually opposed, though they emphasize different channels that produce differences in labour market earnings.  For example, lower earnings because of lower human capital investment in women as a result of social attitudes are entirely compatible with the human capital approach. How does one then distinguish the two approaches in an empirical study? This paper makes an attempt to do so. In this paper we attempt to analyse the labour market discrimination by controlling for variables such as gender, age, experience, number of children, and education in the regressions.


Sign in / Sign up

Export Citation Format

Share Document