Human Capital Disparities and Earnings Inequality in The Portuguese Private Labour Market

Abstract This paper examines human capital inequality and how it relates to earnings in Portugal using data from Quadros de Pessoal for the period 1986–2017. The objective is threefold: (i) show distribution of has evolved over time; (ii) investigate association between inequality; (iii) analyse role returns schooling, together with inequality, explanation inequality. Our findings suggest that computed based on average years schooling employees working Portuguese private labour market, records a positive trend until 2007 decreases this year onwards, suggesting existence Kuznets curve education relating educational attainment levels Based decomposition Generalized Entropy index (Theil N) we observe plays an important although become less last decade. Using Mincerian regressions estimate Blinder-Oaxaca real hourly confirm there are two forces associated observed decrease inequality: reduction compressed mainly tertiary education.