PANOECONOMICUS, 2018, Vol. 65, Issue 3 (Special Issue), pp. 339-362 UDC 331.215(4):004 Received: 06 October 2017; Accepted: 18 December 2018. DOI: https://doi.org/10.2298/PAN1803339N Original scientific paper Manuel Carlos Intra-Country Wage Inequality Nogueira Corresponding author in the OECD Countries University of Coimbra, Faculty of Economics; Centre for Business and Economic Research (CEBER), Summary: Two reasons are mainly brought to explain the recent increase in Portugal
[email protected] intra-country wage inequality in favour of high-skilled labour: Skill-Biased Tech- nological Change (SBTC) and International Trade Liberalisation (IT). Since few Óscar Afonso empirical studies have attempted to assess both interpretations across a com- prehensive sample of countries, we have analysed the impact of both and added University of Porto, Faculty of Economics, some new variables within a unified framework and across 30 OECD countries, Center for Economics and Finance between 2001 and 2015. Using panel data, results show that both explanations (CEFUP); are crucial. However, considering all 30 OECD countries, the IT argument dom- Center for Advanced Studies in Management and Economics inates. Further, we show that seven clusters must be considered in which at least of the University of Beira Interior one theory influence the wage gap. (CEFAGE-UBI), Portugal
[email protected] Key words: Skill-biased technological change, International trade, Immigration, Education, Wage inequality, Cluster analysis. JEL: C23, F41, J31, O33, O50. Throughout different countries, the intra-country wage premium on skills has been increasing at least since the early 80s (e.g. Stephen Machin and John van Reenen 1998; David H.