IDEAS home Printed from https://ideas.repec.org/p/fda/fdaddt/2010-19.html
   My bibliography  Save this paper

Explaining the fall of the skill wage premium in Spain

Author

Listed:
  • 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.

Suggested Citation

  • Florentino Felgueroso & Manuel Hidalgo & SergiJiménez Martín, 2010. "Explaining the fall of the skill wage premium in Spain," Working Papers 2010-19, FEDEA.
    • Handle: RePEc:fda:fdaddt:2010-19
    as

    Download full text from publisher

    File URL: https://documentos.fedea.net/pubs/dt/2010/dt-2010-19.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Card & Thomas Lemieux, 2001. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 705-746.
    2. repec:cte:derepe:de20070222 is not listed on IDEAS
    3. Michele Boldrin & Sergi Jimenez-Martin & Franco Peracchi, 1999. "Social Security and Retirement in Spain," NBER Chapters, in: Social Security and Retirement around the World, pages 305-353, National Bureau of Economic Research, Inc.
    4. Jonathan Gruber & David A. Wise, 2004. "Social Security Programs and Retirement around the World: Micro-Estimation," NBER Books, National Bureau of Economic Research, Inc, number grub04-1.
    5. Hanoch, Giora & Honig, Marjorie, 1985. ""True" Age Profiles of Earnings: Adjusting for Censoring and for Period and Cohort Effects," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 383-394, August.
    6. Berger, Mark C, 1985. "The Effect of Cohort Size on Earnings Growth: A Reexamination of the Evidence," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 561-573, June.
    7. Manuel A. Hidalgo, 2010. "A Demand-Supply Analysis Of The Spanish Education Wage Premium," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 18(3), pages 57-78, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    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 19:10:00
    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 10:43:20
    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 2010-12-09 05:30:40

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Inmaculada Garc�a-Mainar & V�ctor M. Montuenga-G�mez, 2017. "Subjective educational mismatch and signalling in Spain," Documentos de Trabajo dt2017-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    2. Stéphane Bonhomme & Laura Hospido, 2017. "The Cycle of Earnings Inequality: Evidence from Spanish Social Security Data," Economic Journal, Royal Economic Society, vol. 127(603), pages 1244-1278, August.
    3. Florentino Felgueroso & Manuel Hidalgo-Pérez & Sergi Jiménez-Martín, 2016. "The Puzzling Fall of the Wage Skill Premium in Spain," Manchester School, University of Manchester, vol. 84(3), pages 390-435, June.
    4. Tindara Addabbo & Paula Rodr íguez-Modroño & Lina Gálvez-Muñoz, 2014. "Youth living in a couple. How women's labour supply adapts to the crisis. The case of Spain," Center for the Analysis of Public Policies (CAPP) 0114, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    5. Aitor Lacuesta & Sergio Puente & Ernesto Villanueva, 2020. "The schooling response to a sustained increase in low-skill wages: evidence from Spain 1989–2009," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 11(4), pages 457-499, December.
    6. Ada Ferrer-i-carbonell & X. Ramos & M. Oviedo, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Spain," GINI Country Reports spain, AIAS, Amsterdam Institute for Advanced Labour Studies.
    7. Jimeno, Juan F. & Ortega, Ana Carolina, 2012. "Declining returns to skill and the distribution of wages : Spain 1995-2006," UC3M Working papers. Economics we1231, Universidad Carlos III de Madrid. Departamento de Economía.
    8. Manuel Hidalgo-Pérez & Walter García-Fontes, 2014. "Estimating Human Capital Externalities: The Case of the Spanish Provinces, 1995-2010," Working Papers 14.06, Universidad Pablo de Olavide, Department of Economics.
    9. 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 - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 24, pages 175-198.
    10. Raquel Carrasco & Juan F. Jimeno & A. Carolina Ortega, 2011. "Accounting for changes in the Spanish wage distribution: the role of employment Composition effects," Working Papers 1120, Banco de España.
    11. Addabbo, Tindara & Rodríguez-Modroño, Paula & Gálvez-Muñoz, Lina, 2015. "Young people living as couples: How women's labour supply is adapting to the crisis. Spain as a case study," Economic Systems, Elsevier, vol. 39(1), pages 27-42.
    12. Anita Wölfl & Juan S. Mora-Sanguinetti, 2011. "Reforming the Labour Market in Spain," OECD Economics Department Working Papers 845, OECD Publishing.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Florentino Felgueroso & Manuel Hidalgo-Pérez & Sergi Jiménez-Martín, 2016. "The Puzzling Fall of the Wage Skill Premium in Spain," Manchester School, University of Manchester, vol. 84(3), pages 390-435, June.
    2. Alfred Garloff & Carsten Pohl & Norbert Schanne, 2013. "Do small labor market entry cohorts reduce unemployment?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(15), pages 379-406.
    3. Dirk Antonczyk & Thomas DeLeire & Bernd Fitzenberger, 2018. "Polarization and Rising Wage Inequality: Comparing the U.S. and Germany," Econometrics, MDPI, vol. 6(2), pages 1-33, April.
    4. Julian Diaz Saavedra, 2013. "Age-dependent Taxation, Retirement Behavior, and Work Hours Over the Life Cycle," ThE Papers 13/09, Department of Economic Theory and Economic History of the University of Granada..
    5. Sergi Jiménez Martín & Judit Vall Castello, 2009. "Business Cycle Effects on Labour Force Transitions for Older People in Spain," Working Papers 2009-25, FEDEA.
    6. Agar Brugiavini & Franco Peracchi & David A. Wise, 2002. "Pensions and Retirement Incentives. A Tale of Three Countries: Italy, Spain and the USA," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 61(2), pages 131-169, December.
    7. Adriaan Kalwij & Arie Kapteyn & Klaas Vos, 2010. "Retirement of Older Workers and Employment of the Young," De Economist, Springer, vol. 158(4), pages 341-359, November.
    8. Stéphane Bonhomme & Laura Hospido, 2017. "The Cycle of Earnings Inequality: Evidence from Spanish Social Security Data," Economic Journal, Royal Economic Society, vol. 127(603), pages 1244-1278, August.
    9. Peters, Cornelius, 2015. "Do age complementarities affect labour productivity? Evidence from German firm level data," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112941, Verein für Socialpolitik / German Economic Association.
    10. Pilar García-Gómez & Sergi Jiménez-Martín & Judit Vall Castelló, 2017. "Health Capacity to Work at Older Ages: Evidence from Spain," NBER Chapters, in: Social Security Programs and Retirement around the World: The Capacity to Work at Older Ages, pages 269-300, National Bureau of Economic Research, Inc.
    11. Michael Papadopoulos & Margarita Patria & Robert K. Triest, 2017. "Population Aging, Labor Demand, and the Structure of Wages," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 42(3), pages 453-474, July.
    12. Morin, Louis-Philippe, 2015. "Cohort size and youth earnings: Evidence from a quasi-experiment," Labour Economics, Elsevier, vol. 32(C), pages 99-111.
    13. Pilar García-Gómez & Sílvia Garcia-Mandicó & Sergi Jiménez-Martín & Judit Vall-Castelló, 2018. "Trends in Employment and Social Security Incentives in the Spanish Pension System, 1980–2016," NBER Chapters, in: Social Security Programs and Retirement around the World: Reforms and Retirement Incentives, pages 317-371, National Bureau of Economic Research, Inc.
    14. Andrea Ichino & Rudolf Winter-Ebmer, 2004. "The Long-Run Educational Cost of World War II," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 57-86, January.
    15. Richard Blundell & James P. Ziliak & Hugo Lopez, 2023. "Labour market inequality and the changing life cycle profile of male and female wages," IFS Working Papers W23/16, Institute for Fiscal Studies.
    16. Wang, Jun & Yang, Juan & Li, Bo, 2017. "Pain of disasters: The educational cost of exogenous shocks evidence from Tangshan Earthquake in 1976," China Economic Review, Elsevier, vol. 46(C), pages 27-49.
    17. Yang Wang, 2015. "Education Expansion and Decline in Tertiary Premium in Brazil: 1995-2013," Working Papers 1525, Tulane University, Department of Economics.
    18. Pilar García-Gómez & Sílvia Garcia-Mandicó & Sergi Jiménez-Martín & Judit Vall-Castelló, 2024. "The Effects of Social Security Incentives on Retirement in Spain," NBER Chapters, in: Social Security Programs and Retirement around the World: The Effects of Reforms on Retirement Behavior, National Bureau of Economic Research, Inc.
    19. Bernhard Boockmann & Viktor Steiner, 2006. "Cohort effects and the returns to education in West Germany," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1135-1152.
    20. Hyeok Jeong & Yong Kim & Iourii Manovskii, 2015. "The Price of Experience," American Economic Review, American Economic Association, vol. 105(2), pages 784-815, February.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Economic Logic blog

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fda:fdaddt:2010-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carmen Arias (email available below). General contact details of provider: https://www.fedea.net .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.