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Inter-regional wage differentials in Spain

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  • Inmaculada Garcia
  • Jose Alberto Molina

Abstract

The paper analyses the wage differentials among different Spanish regions. Hedonic wage equations are first formulated for those regions and then the wage decomposition method is applied, which allows separation of the effects due to characteristics from those due to returns. The results show that in the Centre and South, half of the wage differential corresponds to each concept, whereas in the North and East the difference is due more to the different remuneration than to the different characteristics. The variables that exert greatest influence on the characteristic differences are seniority, possessing a university degree, the command of a second language, the sector of activity, the supervisory tasks undertaken and the occupation. With respect to the different returns, the largest differences correspond to remuneration for seniority, a second language, the sector of activity, the working hours and discrimination by gender.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 9 (2002)
Issue (Month): 4 ()
Pages: 209-215

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Handle: RePEc:taf:apeclt:v:9:y:2002:i:4:p:209-215

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Cited by:
  1. Aurora Galego & João Pereira, 2013. "Decomposition of Regional Wage Differences Along the Wage Distribution in Portugal: the Importance of Covariates," CEFAGE-UE Working Papers 2013_16, University of Evora, CEFAGE-UE (Portugal).
  2. Jo�o Pereira & Aurora Galego, 2013. "Intra-Regional Regional Wage Inequality In Portugal: A Quantile Based Decomposition Analisys," ERSA conference papers ersa13p158, European Regional Science Association.
  3. Eric Delattre & Jean-Baptiste Combès & Bob Elliott & Diane Skatun, 2012. "Hospital Staffing and Local Pay: an Investigation into the Impact of Local variations in the Competitiveness of Nurses Pay on the Staffing of Hospitals in France," THEMA Working Papers 2012-35, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  4. Vieira, J.A.C. & Couto, J.P.A. & Tiago, M.T.B., 2006. "Inter-regional Wage Dispersion in Portugal," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 6(1).
  5. Aleksey Oshchepkov, 2007. "Are Interregional Wage Differentials in Russia Compensative?," Discussion Papers of DIW Berlin 750, DIW Berlin, German Institute for Economic Research.
  6. Ismael Ahamdanech & Carmelo García-Pérez & Hipolito Simon, 2011. "Wage inequality in Spain: A regional perspective," ERSA conference papers ersa11p1074, European Regional Science Association.
  7. Hernández, Laura & Serrano, Lorenzo, 2012. "Overeducation and its effects on wages: a closer look at the Spanish regions," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 24, pages 59-90.
  8. Vizer, David, 2011. "Behind the North-South divide: A decomposition analysis," MPRA Paper 28364, University Library of Munich, Germany.
  9. Freguglia, Ricardo S. & Menezes, Naercio A., 2011. "Inter-regional Wage Differentials with Individual Heterogeneity: Evidence from Brazil," Insper Working Papers wpe_231, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.

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