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Explaining the fall of the skill wage premium in Spain

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Author Info

  • Florentino Felgueroso
  • Manuel Hidalgo
  • SergiJiménez Martín

Abstract

The main purpose of this work is to document the driven forces of the fall in the wage skill premium (WSP) in Spain in the last two decades. We show that the increase of occupational mismatch helps to explain the downward trend in university returns since the mid-80s. In the second part of the 90s and during the last decade, the decrease of labor market experience and firm tenure among well-matched workers, due to the extensive use of temporary contracts, also contributes to explain the fall of the WSP.

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Bibliographic Info

Paper provided by FEDEA in its series Working Papers with number 2010-19.

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Date of creation: Jul 2010
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Handle: RePEc:fda:fdaddt:2010-19

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References

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  1. Michele Boldrin & Sergi Jimenez-Martni & Franco Peracchi, 1997. "Social Security and Retirement in Spain," NBER Working Papers 6136, National Bureau of Economic Research, Inc.
  2. Javier Ruiz-Castillo, 2007. "La medición de la desigualdad de la renta: una revisión de la literatura," Documentos de Trabajo de Economía de20070222, Universidad Carlos III, Departamento de Economía.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The falling college premium in Spain
    by Economic Logician in Economic Logic on 2010-08-26 14:10:00
  2. El mercado de trabajo en la Gran Recesión (II): los salarios y el efecto composición
    by Florentino Felgueroso in Nada Es Gratis on 2011-07-08 05:43:20
  3. ¿Vale la pena estudiar? (VI) La inusual caída de la ganancia salarial resultante de la educación avanzada
    by Luis Garicano in Nada Es Gratis on 2010-12-08 23:30:40
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Cited by:
  1. Raquel Carrasco & Juan F. Jimeno & A. Carolina Ortega, 2011. "Accounting for changes in the Spanish wage distribution: the role of employment Composition effects," Banco de Espa�a Working Papers 1120, Banco de Espa�a.
  2. Stéphane Bonhomme & Laura Hospido, 2012. "The Cycle Of Earnings Inequality: Evidence From Spanish Social Security Data," Working Papers wp2012_1209, CEMFI.
  3. Aitor Lacuesta & Sergio Puente & Ernesto Villanueva, 2011. "The schooling response to a sustained increase in low-skill wages: evidence from Spain 1989-2009," Banco de Espa�a Working Papers 1208, Banco de Espa�a.
  4. Anita Wölfl & Juan S. Mora-Sanguinetti, 2011. "Reforming the Labour Market in Spain," OECD Economics Department Working Papers 845, OECD Publishing.
  5. Raquel Carrasco & Juan F. Jimeno & A. Carolina Ortega, 2012. "Declining returns to skill and the distribution of wages : Spain 1995-2006," Economics Working Papers we1231, Universidad Carlos III, Departamento de Economía.
  6. Bande, Roberto & Fernández, Melchor & Montuenga , Víctor, 2012. "Wage flexibility and local labour markets: a test on the homogeneity of the wage curve in Spain," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 24, pages 175-198.

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  1. Economic Logic blog

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