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Revisiting interregional wage differentials: New evidence from Spain with matched employer‐employee data

Author

Listed:
  • Inés P. Murillo Huertas
  • Raúl Ramos
  • Hipólito Simón

Abstract

This article examines wage differences across Spain's NUTS‐2 regions along the entire wage distribution based on matched employer‐employee microdata from 2006 to 2014. Unlike previous related studies, we properly control for differences in regional purchasing power parities, which are very large in practice. Although part of the raw regional wage differences observed is explained by differences between regions in productive structures, and, to a much lesser extent, in labor forces, noteworthy, very similar throughout the wage distribution regional differences net of composition effects arise even after controlling for a broad set of individual and firm characteristics.

Suggested Citation

  • Inés P. Murillo Huertas & Raúl Ramos & Hipólito Simón, 2020. "Revisiting interregional wage differentials: New evidence from Spain with matched employer‐employee data," Journal of Regional Science, Wiley Blackwell, vol. 60(2), pages 296-347, March.
    • Handle: RePEc:bla:jregsc:v:60:y:2020:i:2:p:296-347
    DOI: 10.1111/jors.12459
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    Cited by:

    1. Sarah Brown & Gurleen Popli & Alessandro Sasso, 2022. "Decomposing the gender reservation wage gap in Italy: A regional perspective," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 499-540, March.
    2. Abdullah, Borhan & Zangelidis, Alexandros & Theodossiou, Ioannis, 2023. "Demand and supply effects on native-immigrant wage differentials: the case of Malaysia," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 57, pages 1-022.
    3. Francisco Sánchez-Cubo & José Mondéjar-Jiménez & Alejandro García-Pozo & Mauro Maltagliati, 2023. "Keep It Simple: A Methodological Discussion of Wage Inequalities in the Spanish Hospitality Industry," Mathematics, MDPI, vol. 11(5), pages 1-12, February.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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