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Who Are the Insiders? Wage Setting in Spanish Manufacturing Firms

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Author Info

  • Bentolila, Samuel
  • Dolado, Juan J.

Abstract

This paper analyses the wage formation process in Spain taking into account the effect of the institutional change caused by the creation of low-firing-cost, fixed-term labour contracts. An insider-outsider model which assumes that the interests of workers under these contracts are disregarded in wage bargains is set up and tested. The estimation of a wage equation for a sample of large Spanish manufacturing firms yields an estimate of the insider weight and confirms that an increase in the proportion of fixed-term employees increases insiders' wages.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 754.

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Date of creation: Jan 1993
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Handle: RePEc:cpr:ceprdp:754

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Related research

Keywords: Insiders; Outsiders; Temporary Labour Contracts;

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Cited by:
  1. Giancarlo Corsetti & Michael P. Devereux & John Hassler & Gilles Saint-Paul & Hans-Werner Sinn & Jan-Egbert Sturm & Xavier Vives, 2011. "Chapter 4: Spain," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 127-145, 02.
  2. Cesar Rodriguez-Gutierrez, 2006. "An explanation of the changes in the proportion of temporary workers in Spain," Applied Economics, Taylor & Francis Journals, vol. 38(1), pages 47-62.
  3. Gómez Vicente, Mª Teresa & Sánchez y Sánchez-Amaya, Mª Isabel, 1997. "La desrregulación del mercado de trabajo español en el período 1984-1995 y sus efectos sobre el empleo," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 8, pages 109-139, Diciembre.
  4. Sergi Jimenez-Martin & José M. Labeaga & Mariluz Marco, 1996. "Algunos factores explicativos de la existencia de huelgas durante la negociación colectiva en España," Investigaciones Economicas, Fundación SEPI, vol. 20(2), pages 217-242, May.
  5. Kees Folmer, 2009. "Why do macro wage elasticities diverge? A meta analysis," CPB Discussion Paper 122, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Juan F. Jimeno & Luis Toharia, 1993. "The effects of fixed-term employment on wages: theory and evidence from Spain," Investigaciones Economicas, Fundación SEPI, vol. 17(3), pages 475-494, September.
  7. Víctor Manuel Montuenga Gómez & Andrés E. Romeu Santana & Melchor Fernández Fernández, 2000. "Diferencias salariales y comportamiento no competitivo en el mercado de trabajo en la industria española," Documentos de trabajo - Analise Economica 0009, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  8. C. A. de Kam & J. de Haan & C. Giles & A. Manresa & E. Berenguer & S. Calonge & J. Merz, 1996. "Who pays the taxes?," FFB-Discussionpaper 18, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    • de Kam, C. A. & de Haan, J. & Giles, C. & Manresa, A. & Berenguer, E. & Calonge, S., 1996. "Who pays the taxes?," MPRA Paper 7146, University Library of Munich, Germany.
  9. Revenga, Ana, 1995. "Employment and wage effects of trade liberalization : the case of Mexican manufacturing," Policy Research Working Paper Series 1524, The World Bank.
  10. Kees Folmer, 2009. "Why do macro wage elasticities diverge?," CPB Memorandum 224, CPB Netherlands Bureau for Economic Policy Analysis.

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