The impact of education on wage determination between workers in southern and central-northern Italy
The aim of this paper is to examine the earnings dynamic in Italy, in order to explain earnings differences between southern Italy and centralnorthern Italy. In our analysis we use different techniques: ordinary least squares (OLS), quantile regression models and the algorithm developed by...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Economists' Association of Vojvodina
2016-01-01
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| Series: | Panoeconomicus |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/1452-595X/2016/1452-595X1601025A.pdf |
| Summary: | The aim of this paper is to examine the earnings dynamic in Italy, in order
to explain earnings differences between southern Italy and centralnorthern
Italy. In our analysis we use different techniques: ordinary least squares
(OLS), quantile regression models and the algorithm developed by Machado and
Mata (2005). In particular, the Machado and Mata (2005) algorithm allows us
to examine the relative importance of both differences in workers’
characteristics and in their returns in explaining southern, central and
northern Italy earnings differences at a point in time, as well as across
time within each macro-area. We focus on the role of differences in
educational endowment and returns to education, one of the most important
components of human capital in the stylised literature. The level of
education determines the substantial disparities in terms of wage returns.
However, this holds only for levels of education related to compulsory
education. |
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| ISSN: | 1452-595X 2217-2386 |