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

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Author Info
Hipólito J. Simón
Raúl Ramos
Esteban Sanromá

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

Volume (Year): 38 (2006)
Issue (Month): 15 (August)
Pages: 1749-1760
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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1749-1760

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Juan J. Dolado & Florentino Felgueroso & Juan F. Jimeno, . "The effects of minimum bargained wages on earnings: Evidence from Spain," Working Papers 97-04, FEDEA.
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  2. Nickell, Stephen & Layard, Richard, 1999. "Labor market institutions and economic performance," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084 Elsevier. [Downloadable!] (restricted)
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  3. John P. Haisken-DeNew & Christoph M. Schmidt, . "Inter-Industry and Inter-Region Differentials: Mechanics and Interpretation," Working Papers 9504, SELAPO Center for Human Resources. [Downloadable!]
  4. Cardoso, Ana Rute & Portugal, Pedro, 2003. "Bargained Wages, Wage Drift and the Design of the Wage Setting System," IZA Discussion Papers 914, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January. [Downloadable!] (restricted)
  6. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March. [Downloadable!] (restricted)
  7. Hirschberg, Joe & Lye, Jenny, 2001. "The Interpretation of Multiple Dummy Variable Coefficients: An Application to Industry Effects in Wage Equations," Applied Economics Letters, Taylor and Francis Journals, vol. 8(11), pages 701-07, November. [Downloadable!] (restricted)
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  1. Hipólito Simón, 2009. "La desigualdad salarial en España: Una perspectiva internacional y temporal," Investigaciones Economicas, Fundación SEPI, vol. 33(3), pages 439-471, September. [Downloadable!]
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