Earnjngs Inequality in Portugal: High and Rising?

The level of earnings inequality and its change during the 1980s in Portugal are analyzed, relying on several inequality measures and on international comparisons to generate insight into their patterns. A high level of inequality at the beginning of the eighties is detected, together with a pronounced rise in wage dispersion, brought about by growing inequality at the top. Changes taking place within economic activities, possibly technical progress, are the main forces driving these changes in the wage pattern, while demographic forces, as well as international trade, which could have generated shifts in the demand for labor across economic activities, should be dismissed as explanations for the rise in labor market inequality in Portugal from 1983 to 1992.