Social Justice: Disparities in Average Earnings across Portuguese Municipalities

An ever-ongoing discussion these days involves the disparities in monthly earnings across different genders, geographical locations, levels of education, economic sectors, and skills and careers, with various economic and social consequences. In fact, in a framework such as that in which we live in nowadays (with pertinent concerns about economic and social convergences across several indicators), investigating these disparities would be interesting in order to complement the basis that is considered for the design of social policies. There are few studies considering the approaches here developed for this topic. The objective of this study is to analyse the disparities in the average monthly earnings received by employees across Portuguese mainland municipalities over the period 2004-2012, considering as additional analysis criteria geographical location, gender, levels of qualification, levels of education, economic sectors, professional activities, and further qualifications. For this both a cluster and factor analysis were considered to better identify municipalities with similar characteristics and correlations among variables. The results show that the disparities in the monthly average earnings between the Portuguese municipalities are related to three indexes associated with gender, qualifications, and chosen professions. The findings presented are specific to the Portuguese framework; however, the approaches developed in this study may be applied in other contexts to explore the dynamics related with the topic of social justice.