Department of Economics

A QUANTILE REGRESSION ANALYSIS OF WAGES IN PANAMA

Department of Economics

University of Delaware

Working Paper #2004-01

A QUANTILE REGRESSION ANALYSIS OF WAGES IN PANAMA

Evangelos M. Falaris

ABSTRACT

I investigate differences in the effects of worker characteristics on wages in Panama at different points of the conditional wage distribution.   Public sector employment increases wages of men and of women relatively more at lower quantiles.  Public sector employment increases wages of the median worker in that sector and reduces wage inequality within the sector.  The existence of a labor union at a worker’s workplace increases relatively more wages of men at lower quantiles.   Labor unions reduce male wage inequality within the union sector and increase average wages of union members.  Unions do not increase women’s wages but reduce wage inequality within the union sector.  Working for a large firm increases wages relatively more at lower quantiles.   Rates of return to higher education and to experience are larger for men at higher quantiles.  Experience and higher education increase men’s wage inequality.  There are no differences across quantiles in rates of return to schooling and experience for women.

Keywords: wages, Panama, quantile regression

JEL classifications: J31, O15

The Lerner College is home to a state-of-the-art financial trading facility, the $1.4 million student-led Blue Hen Investment Fund, a student-managed restaurant and hotel, a high-technology development center of a global bank and a start-up experience for students with new business ideas.

Lerner College faculty - like Anu Sivaraman, who is among Social Media Marketing Magazine’s “Top 100 Marketing Professors on Twitter” and MBAprograms.org’s “Top 50 Marketing Professors on Twitter” - are thought leaders who command attention from influential business audiences, economists and policy makers.

All Lerner College departments offer experience-driven learning and emphasize evidence-based analytics methods to enrich the student experience. Here, finance students visit New York City’s financial districts for a first-hand look at markets trading and to meet with UD alumni.

Charles W. Horn, AS75, and wife Patricia, recently made a $3 million commitment to enhance and expand entrepreneurial studies.

  • Alfred Lerner College of Business & Economics
    303 Alfred Lerner Hall  •  Newark, DE 19716  •  USA  •  ©