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

  • Hipolito Simon
  • Raul Ramos
  • Esteban Sanroma

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 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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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 15 ()
Pages: 1749-1760

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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1749-1760
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  1. Esteban Sanroma Melendez & Raul Ramos Lobo, 2003. "Wage curves for Spain. Evidence from the family budget survey," Working Papers in Economics 101, Universitat de Barcelona. Espai de Recerca en Economia.
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  4. Blau, Francine D. & Kahn, Lawrence M., 1999. "Institutions and laws in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 25, pages 1399-1461 Elsevier.
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  14. John P. Haisken-DeNew & Christoph M. Schmidt, 2000. "Interindustry and Interregion Differentials: Mechanics and Interpretation," The Review of Economics and Statistics, MIT Press, vol. 79(3), pages 516-521, August.
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  16. 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.
  17. Blackaby, David H & Murphy, Philip D, 1991. "Industry Characteristics and Inter-regional Wage Differences," Scottish Journal of Political Economy, Scottish Economic Society, vol. 38(2), pages 142-61, May.
  18. Erica L. Groshen, 1988. "Why do wages vary among employers?," Economic Review, Federal Reserve Bank of Cleveland, issue Q I, pages 19-38.
  19. repec:cup:cbooks:9780521590730 is not listed on IDEAS
  20. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
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