Interregional wage differences in the Spanish economy are of considerable magnitude. More precisely the average wage in Madrid is 69% higher than in Murcia and the figure to Catalonia is 47% higher. The main objective of this paper is to explain these differences. In order to do so, we estimate enlarged Mincer equations and study the quantitative importance of the "territorial effect" on wages. Then we attempt to explain these as compensatory differences or as a result of existent disequilibrium in the provincial labour markets. The evidence obtained allows us to determine the magnitude of the "territorial effect". Once the influence of the individual and job characteristics are controlled for, there still remain positive differences slightly greater than 24% between the provinces of Barcelona and Seville and about 13% between Madrid and Seville. These wage differences are compensationg to some extent for differences in the levels of prices, but they do not correspond to the unequal attraction of the Spanish provinces. The differences are explained, finally, by the unequal level of prices and by the irregular distribution of unemployment between provinces, which is shown to have a negative effect on wages close to the magnitude estimated by Blanchflower and Oswald (1994).
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number
23.
Length: 0 pages Date of creation: 1998 Date of revision: Handle: RePEc:bar:bedcje:199823
Contact details of provider: Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques. Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona. Spain. Web page: http://www.ere.ub.es More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Espai de Recerca en Economia).
Related research
Keywords:
Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General