Wage mobility, Job mobility and Spatial mobility in the Portuguese economy

provided by Research Papers in Economics

WAGE MOBILITY, JOB MOBILITY AND SPATIAL MOBILITY

IN PORTUGUESE ECONOMY¹

Nuno M. O. Romao e Vftor M.A. Escaria

CIRIUS, ISEG - UTL

Rua do Quelhas, 6

1200-781 LISBOA PORTUGAL

E-mail: [email protected]

Very preliminary. Please do not quote. Comments welcome

ABSTRACT

This paper intends to analyse to what extent does a worker who, along with a job move
undergoes a spatial move, gain a wage increase. For that matter, a sample of Quadros de
Pessoal is used with information gathered regarding all the workers that are part of
those tables, simultaneously for the years 1997 and 1998 as well as their working
places. This information is initially used to carry out a bivariate analysis allowing
characterizing the workers that change jobs, those who change working places and those
who experience both changes. Afterwards, a wage equation is estimated, namely an
Augmented Mincer Equation, taking into account both the hourly wage and the wage,
making it possible to verify the influence of spatial mobility (through three levels of
mobility, according to the distance between the old and new jobs) on the wage. In fact,
the results of these estimations suggest that the longer the distance between the old and
the new job, higher wage the moving worker will get.

KEYWORDS

Wage mobility, job mobility, spatial mobility, Portugal

JEL Classification: J31, J61, J62, R23

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¹ Financial support from the Science and Technology Foundation Grant POCTI/ECO/37668/2001 is
gratefully acknowledged.

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