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

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  • Hipólito J. Simón

    ()
    (Instituto de Economía Internacional; Universidad de Alicante)

  • Raúl Ramos

    ()
    (AQR; Universitat de Barcelona (UB))

  • Esteve Sanromà

    ()
    (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB))

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 an 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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Bibliographic Info

Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2005/7.

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Length: 29 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:ieb:wpaper:159353art102

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Keywords: Collective bargaining; Regional wage differences; Wage structure;

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References

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  1. Teulings,Coen & Hartog,Joop, 1998. "Corporatism or Competition?," Cambridge Books, Cambridge University Press, number 9780521590730, April.
  2. Hirschberg, J. & Lye, J., 1999. "The Interpretation of Multiple Dummy Variable Coefficients: An Application to Industry Effects in Wage Equations," Department of Economics - Working Papers Series 716, The University of Melbourne.
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  7. Jimeno, Juan F. & Bentolila, Samuel, 1998. "Regional unemployment persistence (Spain, 1976-1994)," Labour Economics, Elsevier, vol. 5(1), pages 25-51, March.
  8. 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).
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  15. Inmaculada Garcia-Mainar & Victor Montuenga-Gomez, 2003. "The Spanish Wage Curve: 1994-1996," Regional Studies, Taylor & Francis Journals, vol. 37(9), pages 929-945.
  16. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
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Cited by:
  1. Ismael Ahamdanech Zarco & Carmelo García Pérez & Hipólito Simón Pérez, 2010. "Wage inequality in Spain: A regional perspective," Working Papers 2010/24, Institut d'Economia de Barcelona (IEB).
  2. Raul Ramos & Esteban Sanromá, 2001. "Local human capital and productivity: an analysis for the Spanish regions," ERSA conference papers ersa01p139, European Regional Science Association.
  3. LILLO, Adelaida & CASADO-DÍAZ, José M., 2010. "On The Rewards To Education In Spain: Endogeneity And Regional Differences," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(3).
  4. Aurora Galego & João Pereira, 2013. "Decomposition of Regional Wage Differences Along the Wage Distribution in Portugal: the Importance of Covariates," CEFAGE-UE Working Papers 2013_16, University of Evora, CEFAGE-UE (Portugal).
  5. Hipólito Simón, 2009. "La desigualdad salarial en España: Una perspectiva internacional y temporal," Investigaciones Economicas, Fundación SEPI, vol. 33(3), pages 439-471, September.

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