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Inter-regional wage differentials in Spain


  • Inmaculada Garcia
  • Jose Alberto Molina


The paper analyses the wage differentials among different Spanish regions. Hedonic wage equations are first formulated for those regions and then the wage decomposition method is applied, which allows separation of the effects due to characteristics from those due to returns. The results show that in the Centre and South, half of the wage differential corresponds to each concept, whereas in the North and East the difference is due more to the different remuneration than to the different characteristics. The variables that exert greatest influence on the characteristic differences are seniority, possessing a university degree, the command of a second language, the sector of activity, the supervisory tasks undertaken and the occupation. With respect to the different returns, the largest differences correspond to remuneration for seniority, a second language, the sector of activity, the working hours and discrimination by gender.

Suggested Citation

  • Inmaculada Garcia & Jose Alberto Molina, 2002. "Inter-regional wage differentials in Spain," Applied Economics Letters, Taylor & Francis Journals, vol. 9(4), pages 209-215.
  • Handle: RePEc:taf:apeclt:v:9:y:2002:i:4:p:209-215 DOI: 10.1080/13504850110065849

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    References listed on IDEAS

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    Cited by:

    1. Vieira, J.A.C. & Couto, J.P.A. & Tiago, M.T.B., 2006. "Inter-regional Wage Dispersion in Portugal," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 6(1).
    2. Rycx, Francois & Saks, Yves & Tojerow, Ilan, 2016. "Misalignment of Productivity and Wages across Regions? Evidence from Belgian Matched Panel Data," IZA Discussion Papers 10336, Institute for the Study of Labor (IZA).
    3. Aurora Galego & João Pereira, 2014. "Decomposition of Regional Wage Differences Along the Wage Distribution in Portugal: The Importance of Covariates," Environment and Planning A, , vol. 46(10), pages 2514-2532, October.
    4. Vizer, David, 2011. "Behind the North-South divide: A decomposition analysis," MPRA Paper 28364, University Library of Munich, Germany.
    5. Joao Pereira & Aurora Galego, 2013. "Intra-Regional Regional Wage Inequality In Portugal: A Quantile Based Decomposition Analisys," ERSA conference papers ersa13p158, European Regional Science Association.
    6. Molina, Jose Alberto & Velilla, Jorge & Ortega, Raquel, 2016. "Entrepreneurial activity in the OECD: Pooled and cross-country evidence," MPRA Paper 71592, University Library of Munich, Germany.
    7. Paula Herrera-Idárraga & Enrique López-Bazo & Elisabet Motellón, 2016. "Regional Wage Gaps, Education and Informality in an Emerging Country: The Case of Colombia," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(4), pages 432-456, October.
    8. Jean-Baptiste Combes & Eric Delattre & Bob Elliott & Diane Skåtun, 2015. "Hospital staffing and local pay: an investigation into the impact of local variations in the competitiveness of nurses’ pay on the staffing of hospitals in France," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(7), pages 763-780, September.
    9. Hernández, Laura & Serrano, Lorenzo, 2012. "Overeducation and its effects on wages: a closer look at the Spanish regions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 24, pages 59-90.
    10. Aleksey Oshchepkov, 2007. "Are Interregional Wage Differentials in Russia Compensative?," Discussion Papers of DIW Berlin 750, DIW Berlin, German Institute for Economic Research.
    11. Ricardo Freguglia & Naercio Menezes-Filho, 2012. "Inter-regional wage differentials with individual heterogeneity: evidence from Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 17-34, August.
    12. Campaña, Juan Carlos & Gimenez-Nadal, J. Ignacio & Molina, Jose Alberto, 2016. "Diferencias entre auto-empleados y asalariados en los usos del tiempo: Aragón vs. Spain
      [Differences between self-employees and wage-earners in time uses: Aragon vs. Spain]
      ," MPRA Paper 71463, University Library of Munich, Germany.
    13. Murillo Huertas, Inés P. & Ramos, Raul & Simón, Hipólito, 2017. "Revisiting Interregional Wage Differentials: New Evidence from Spain with Matched Employer-Employee Data," IZA Discussion Papers 11122, Institute for the Study of Labor (IZA).
    14. 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).
    15. Jean-Guy LORANGER & Gérard BOISMENU, "undated". "A Dynamic Institutional Analysis with a Macroeconomic Model," EcoMod2010 259600107, EcoMod.

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