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Applied Economics Letters Volume 25, 2018 - Issue 14
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Articles

Skill premium in Portuguese manufacturing industries

Manuel Carlos NogueiraFaculty of Economics, University of Coimbra, Coimbra, Portugal
,
Óscar AfonsoFaculty of Economics, University of Porto, Porto, Portugal;CEFAGE-UBI, covilhã, PortugalCorrespondence[email protected]
ORCID Iconhttp://orcid.org/0000-0002-9597-9850
ORCID Icon &
Elias SoukiazisFaculty of Economics, University of Coimbra, Coimbra, Portugal;CeBER, Coimbra, Portugal
Pages 1015-1018 | Published online: 16 Oct 2017
 
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ABSTRACT

The debate between the skill-biased technological change (SBTC) approach and the international trade (IT) explanation to obtain the best explanation for the wage gap between skilled and unskilled workers continues. In this article, we divide the Portuguese manufacturing industries into high-tech and low-tech and study the approach that best justifies the wage gap, for the period between 2007 and 2014. The results point out that the SBTC approach is the main explanation to the formation the wage gap between the labour force with tertiary education (skilled) and with secondary and primary education (unskilled).

JEL CLASSIFICATION:

Disclosure statement

No potential conflict of interest was reported by the authors.

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