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Collective bargaining and regional wage differences in Spain: an empirical analysis

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  • Hipolito Simon
  • Raul Ramos
  • Esteban Sanroma

Abstract

This article analyses the importance of labour market institutions and, in particular, collective wage bargaining in shaping regional wage differences in the Spanish labour market. Using microdata from the Spanish Structure of Earnings Survey, our results reveal that there are significant inter-regional wage differences for similarly skilled workers. These differences are present throughout the whole wage structure and can be explained by both competitive and non-competitive factors, such as insufficient competition in product markets. In this context, industry-level collective bargaining plays a major role in accounting for regional wage differences, a role that in the Spanish case is enhanced due to its unusual regional dimension.

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Bibliographic Info

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

Volume (Year): 38 (2006)
Issue (Month): 15 ()
Pages: 1749-1760

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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1749-1760

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Citations

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Cited by:
  1. Esteban Sanroma & Raul Ramos, 2007. "Local Human Capital and Productivity: An Analysis for the Spanish Regions," Regional Studies, Taylor and Francis Journals, vol. 41(3), pages 349-359.
  2. Ismael Ahamdanech & Carmelo García-Pérez & Hipolito Simon, 2011. "Wage inequality in Spain: A regional perspective," ERSA conference papers ersa11p1074, European Regional Science Association.
  3. LILLO, Adelaida & CASADO-DÍAZ, José M., 2010. "On The Rewards To Education In Spain: Endogeneity And Regional Differences," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(3).
  4. Hipólito Simón, 2009. "La desigualdad salarial en España: Una perspectiva internacional y temporal," Investigaciones Economicas, Fundación SEPI, vol. 33(3), pages 439-471, September.

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