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Regional Unemployment in Spain - Disparities, Business Cycle and Wage Setting

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  • Roberto Bande

    ()

  • Melchor Fernandez

    ()

  • Víctor Manuel Montuenga

    ()

Abstract

The existence and persistence of regional disparities is a common problem of many European economies. However, in Spain this fact exhibits a characteristic feature: a strong positive relationship with the business cycle. The analysis in this paper investigates the relationship between this distinguishing feature of the Spanish economy with the wage bargain system, and how changes in this system may have influenced the aggregate Spanish labour market performance in the recent past. The empirical findings of an important imitation effect in wage bargainings may explain both the persistence of disparities and their positive relationship with the cycle. This result has a direct implication to employment policies, which must take into account the regional dimension of the unemployment problem.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p489.

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Date of creation: Aug 2005
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Handle: RePEc:wiw:wiwrsa:ersa05p489

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Cited by:
  1. Grigoryeva, Nadezhda, 2012. "The Problem Of Youth Unemployment in Rural Area," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(1), March.
  2. Enrique López-Bazo & Elisabet Motellón, 2013. "On the geography of unemployment rates and the spatial sorting of workers? schooling," ERSA conference papers ersa13p869, European Regional Science Association.
  3. Roberto Bande & Marika Karanassou, 2006. "Labour Market Flexibility and Regional Unemployment Rate Dynamics: Spain (1980-1995)," ERSA conference papers ersa06p53, European Regional Science Association.
  4. Antonio Golpe & Andre van Stel, 2007. "Self-Employment and Unemployment in Spanish Regions in the Period 1979-2001," Jena Economic Research Papers 2007-021, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  5. Ismael Ahamdanech & Carmelo García-Pérez & Hipolito Simon, 2011. "Wage inequality in Spain: A regional perspective," ERSA conference papers ersa11p1074, European Regional Science Association.
  6. Camilo Alberto Cárdenas Hurtado & María Alejandra Hernández Montes & Jhon Edwar Torres Gorron, 2014. "An Exploratory Analysis of Heterogeneity on Regional Labour Markets and Unemployment Rates in Colombia: An MFACT approach," Borradores de Economia 802, Banco de la Republica de Colombia.
  7. Sala, Hector & Trivín, Pedro, 2013. "Labour Market Dynamics in Spanish Regions: Evaluating Asymmetries in Troublesome Times," IZA Discussion Papers 7746, Institute for the Study of Labor (IZA).
  8. Roberto Bande Ramudo & Melchor Fernández Fernández & Víctor Montuenga Gómez, 2011. "Wage flexibility and local labour markets: homogeneity of the wage curve in Spain," Documentos de trabajo - Analise Economica 0044, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  9. Schmillen, Achim & Möller, Joachim, 2012. "Distribution and determinants of lifetime unemployment," Labour Economics, Elsevier, vol. 19(1), pages 33-47.
  10. Roberto Bande & Marika Karanassou, 2011. "The NRU and the Evolution of Regional Disparities in Spanish Unemployment," Working Papers 681, Queen Mary, University of London, School of Economics and Finance.
  11. Bande, Roberto & Karanassou, Marika, 2010. "Spanish Regional Unemployment Revisited: The Role of Capital Accumulation," IZA Discussion Papers 5012, Institute for the Study of Labor (IZA).
  12. Enrique López-Bazo & Elisabet Motellón, 2011. "The regional distribution of unemployment. A microeconomic perspective," ERSA conference papers ersa11p1128, European Regional Science Association.
  13. Andrea ÉLTETÕ, 2011. "The economic crisis and its management in Spain," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 2, pages 41-55, June.
  14. José R. Gamarra, 2006. "¿Cómo se comportan las tasas de desempleo en siete ciudades colombianas?," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO.
  15. Ana Viñuela & Fernando Rubiera-Morollón & Esteban Fernández-Vázquez, 2014. "Applying economic-based analytical regions: a study of the spatial distribution of employment in Spain," The Annals of Regional Science, Springer, vol. 52(1), pages 87-102, January.

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