Public sector wage gaps in Spanish regions
AbstractThis paper provides an approximation to the measurement of public sector wage gaps in Spanish regions. By using data from the European Community Household Panel, it is shown that the balance between what private firms pay in the local market and what the public sector pays, differs substantially in different areas of the country. Public sector wage differences among Spanish regions are mostly due to differences in returns, not to differences in characteristics or to selection effects, and are not constant across gender, educational levels, or occupations. Moreover, in those regions where Regional Governments have a higher weight in public employment, public wage gaps are higher and public employers pay higher returns. There also seems to be a cross-regional positive correlation between public wage gaps and unemployment, and a negative one between labour productivity and public wage gaps. Hence, a tentative conclusion is that the incentives to select into the public sector are higher in the low productivity regions, precisely those where scarcity of human capital in the private sector may be the most important factor for explaining economic backwardness.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 06.10.
Length: 48 pages
Date of creation: Mar 2006
Date of revision:
public sector; wage differentials; switching regressions; Spanish regions.;
Other versions of this item:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
- H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-18 (All new papers)
- NEP-GEO-2006-03-18 (Economic Geography)
- NEP-LAB-2006-03-18 (Labour Economics)
- NEP-PBE-2006-03-18 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ronald Oaxaca, .
"Male-Female Wage Differentials in Urban Labor Markets,"
396, Princeton University, Department of Economics, Industrial Relations Section..
- Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
- Adriana Kugler & Juan F. Jimeno & Virginia Hernanz, 2002.
"Employment consequences of restrictive permanent contracts: Evidence from Spanish labor market reforms,"
Economics Working Papers
651, Department of Economics and Business, Universitat Pompeu Fabra.
- Kugler, Adriana & Jimeno, Juan F. & Hernanz, Virginia, 2002. "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labor Market Reforms," IZA Discussion Papers 657, Institute for the Study of Labor (IZA).
- Adriana Kugler & Juan F. Jimeno & Virginia Hernanz, . "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labor Market Reforms," Working Papers 2003-14, FEDEA.
- Hernanz, Virginia & Jimeno, Juan Francisco & Kugler, Adriana D., 2003. "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labour Market Reforms," CEPR Discussion Papers 3724, C.E.P.R. Discussion Papers.
- van der Gaag, Jacques & Vijverberg, Wim, 1988. "A Switching Regression Model for Wage Determinants in the Public and Private Sectors of a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 244-52, May.
- George J. Borjas, 2002. "The Wage Structure and the Sorting of Workers into the Public Sector," NBER Working Papers 9313, National Bureau of Economic Research, Inc.
- Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
- Carrasco, R., 1998.
"Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labour Participation,"
9805, Centro de Estudios Monetarios Y Financieros-.
- Carrasco, Raquel, 2001. "Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labor Participation," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 385-94, October.
- Raquel Carrasco, 1999. "Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labour Participation," Working Papers 1999.3, Fondazione Eni Enrico Mattei.
- Yun, Myeong-Su, 1999. "Generalized Selection Bias and The Decomposition of Wage Differentials," IZA Discussion Papers 69, Institute for the Study of Labor (IZA).
- Dustmann, C. & Soest, A.H.O. van, 1997.
"Wage structures in the private and public sectors in West Germany,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-74120, Tilburg University.
- Christian Dustmann & Arthur Van Soest, 1997. "Wage structures in the private and public sectors in West Germany," Fiscal Studies, Institute for Fiscal Studies, vol. 18(3), pages 225-247, August.
- Liliana E. Pezzin & Barbara Steinberg Schone, 1999. "Intergenerational Household Formation, Female Labor Supply and Informal Caregiving: A Bargaining Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 475-503.
- Jimeno, Juan F. & Bentolila, Samuel, 1998. "Regional unemployment persistence (Spain, 1976-1994)," Labour Economics, Elsevier, vol. 5(1), pages 25-51, March.
- Dolado, Juan José & García-Serrano, Carlos & Jimeno, Juan F., .
"Drawing Lessons from the Boom of Temporary Jobs in Spain,"
Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/3263, Universidad Carlos III de Madrid.
- Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002. "Drawing Lessons From The Boom Of Temporary Jobs In Spain," Economic Journal, Royal Economic Society, vol. 112(721), pages F270-F295, June.
- Dolado, Juan J. & Garcia-Serrano, Carlos & Jimeno, Juan Francisco, 2001. "Drawing Lessons From the Boom of Temporary Jobs in Spain," CEPR Discussion Papers 2884, C.E.P.R. Discussion Papers.
- Juan José Dolado & Carlos García-Serrano & Juan F. Jimeno, . "Drawing Lessons from the Boom of Temporary Jobs in Spain," Working Papers 2001-11, FEDEA.
- Prescott, David & Wilton, David, 1992. "The Determinants of Wage Changes in Indexed.and Nonindexed Contracts: A Switching Model," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 331-55, July.
- María A. Davia & Virginia Hernanz, .
"Temporary Employment and Segmentation in the Spanish Labour Market: An Empirical Analysis through the Study of Wage Differentials,"
- María A.Davia & Virginia Hernanz, 2004. "Temporary employment and segmentation in the Spanish labour market: An empirical analysis through the study of wage differentials," Spanish Economic Review, Springer, vol. 6(4), pages 291-318, December.
- Cecilia Albert & Juan F. Jimeno & Gloria Moreno, . "Pay Determination in the Spanish Public Sector," Working Papers 97-18, FEDEA.
- 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.
- Francisco de Castro & Pablo Hernández de Cos, 2006.
"The economic effects of exogenous fiscal shocks in Spain: a SVAR approach,"
Working Paper Series
647, European Central Bank.
- Francisco de Castro & Pablo Hernández de Cos, 2006. "The economic effects of exogenous fiscal shocks in Spain: a SVAR approach," Banco de EspaÃÂ±a Working Papers 0604, Banco de EspaÃ±a.
- Gabriel Jiménez & Vicente Salas-Fumás & Jesús Saurina, 2006. "Credit market competition, collateral and firms' finance," Banco de EspaÃÂ±a Working Papers 0612, Banco de EspaÃ±a.
- Gabriele Cardullo, 2012. "Public Sector Wage Bargaining, Unemployment, and Inequality," DEP - series of economic working papers 2/2012, University of Genoa, Research Doctorate in Public Economics.
- Luis J. Álvarez & Pablo Burriel & Ignacio Hernando, 2005.
"Price setting behaviour in Spain: evidence from micro PPI data,"
Working Paper Series
522, European Central Bank.
- Luis J. �lvarez & Pablo Burriel & Ignacio Hernando, 2010. "Price-setting behaviour in Spain: evidence from micro PPI data," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(2-3), pages 105-121.
- Luis J. Álvarez & Pablo Burriel & Ignacio Hernando, 2005. "Price setting behaviour in Spain: evidence from micro PPI data," Banco de EspaÃÂ±a Working Papers 0527, Banco de EspaÃ±a.
- Mario Izquierdo & Aitor Lacuesta, 2006.
"Wage inequality in Spain: recent developments,"
Banco de EspaÃÂ±a Working Papers
0615, Banco de EspaÃ±a.
- Óscar J. Arce & David López-Salido, 2006.
"House Prices, Rents, and Interest Rates under Collateral Constraints,"
Banco de EspaÃÂ±a Working Papers
0610, Banco de EspaÃ±a.
- Arce, Oscar & López-Salido, J David, 2006. "House Prices, Rents and Interest Rates Under Collateral Constraints," CEPR Discussion Papers 5689, C.E.P.R. Discussion Papers.
- Paloma López-García & Sergio Puente, 2006. "Business demography in Spain: determinants of firm survival," Banco de EspaÃÂ±a Working Papers 0608, Banco de EspaÃ±a.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rocío Fernández).
If references are entirely missing, you can add them using this form.