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Wage differences in the hospitality sector

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  • Casado-Díaz, José M.
  • Simón, Hipólito

Abstract

The article examines the origin of differences between wages in the hospitality sector and the rest of the private sector in Spain. The evidence obtained for the 2002–2010 period shows that the wage disadvantage of hospitality presents an increasing profile along the wage distribution so that it is particularly relevant for those earning comparatively higher salaries. In contrast with other low-wage sectors, lower wages in hospitality are explained almost entirely by the specific characteristics of its workers and jobs (particularly their lower educational qualifications and their higher presence in low-skilled occupations), and not by the existence of lower rewards to those characteristics. Highly qualified individuals are however an exception since they suffer a wage penalty for working in the sector. Furthermore the analysis shows that pay inequality is substantially lower in the hospitality sector and that it is not due to the relative characteristics of its workers and jobs.

Suggested Citation

  • Casado-Díaz, José M. & Simón, Hipólito, 2016. "Wage differences in the hospitality sector," Tourism Management, Elsevier, vol. 52(C), pages 96-109.
    • Handle: RePEc:eee:touman:v:52:y:2016:i:c:p:96-109
    DOI: 10.1016/j.tourman.2015.06.015
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    Cited by:

    1. Jackman, Mahalia, 2022. "The effect of tourism on gender equality in the labour market: Helpmate or hindrance?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 90.
    2. Ana María Estrada-Jabelaa & Lewis Enrique Polo-Espinosab & Gerson Javier Pérez-Valbuenac & Lucas Wilfried Hahn-De-Castro, 2016. "Caracterización del mercado laboral en el sector hotelero de Cartagena y las principales áreas metropolitanas," Documentos de trabajo sobre Economía Regional y Urbana 242, Banco de la Republica de Colombia.
    3. Valentine Calinaud & Jithendran Kokkranikal & Maria Gebbels, 2021. "Career Advancement for Women in the British Hospitality Industry: The Enabling Factors," Work, Employment & Society, British Sociological Association, vol. 35(4), pages 677-695, August.
    4. Shakeela, Aishath & Weaver, David, 2018. "“Managed evils” of hedonistic tourism in the Maldives: Islamic social representations and their mediation of local social exchange," Annals of Tourism Research, Elsevier, vol. 71(C), pages 13-24.
    5. Azzurra Rinaldi & Irene Salerno, 2020. "The tourism gender gap and its potential impact on the development of the emerging countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(5), pages 1465-1477, December.
    6. Joaquim Ramos Silva & Carla Regina Ferreira Freire Guimarães, 2017. "Wage differentials in Brazil: Tourism vs. other service sectors," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1319606-131, January.
    7. Adelaida Lillo-Bañuls & José M Casado-Díaz & Hipólito Simón, 2018. "Examining the determinants of job satisfaction among tourism workers," Tourism Economics, , vol. 24(8), pages 980-997, December.

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    More about this item

    Keywords

    Hospitality; Decomposition; Wages; Wage differences;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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