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Earnings inequality in Spain: new evidence using tax data

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  • Stéphane Bonhomme
  • Laura Hospido

Abstract

We use tax files from 2004 to 2010 to document the recent evolution of earnings inequality in Spain. We find that inequality went in parallel with the evolution of the unemployment rate during the period. This evolution is consistent with the evidence from Social Security records recently documented in Bonhomme and Hospido (2012). Quantitatively, the 90/10 percentile ratio of daily earnings experienced a 10% increase between 2007 and 2010, which is partly but not fully explained by changes in labour force composition. We also use the tax data to study the evolution of the gender earnings gap, and find that it has decreased throughout the distribution during the period. Lastly, we tentatively exploit the panel dimension of the data to explore the permanent and temporary dimensions of Spanish inequality.

Suggested Citation

  • Stéphane Bonhomme & Laura Hospido, 2013. "Earnings inequality in Spain: new evidence using tax data," Applied Economics, Taylor & Francis Journals, vol. 45(30), pages 4212-4225, October.
  • Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4212-4225
    DOI: 10.1080/00036846.2013.781261
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    File URL: http://hdl.handle.net/10.1080/00036846.2013.781261
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    Cited by:

    1. Ainhoa Aparicio & Libertad González Luna, 2013. "Newborn health and the business cycle: Is it good to be born in bad times?," Economics Working Papers 1374, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2014.
    2. repec:spr:series:v:8:y:2017:i:1:d:10.1007_s13209-017-0154-0 is not listed on IDEAS
    3. Brindusa Anghel & Sara Rica & Aitor Lacuesta, 2014. "The impact of the great recession on employment polarization in Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 5(2), pages 143-171, August.
    4. Vicente Donoso & Víctor Martín & Asier Minondo, 2014. "Import competition from China and unemployment. An analysis using Spanish workers’micro-data," Working Papers del Instituto Complutense de Estudios Internacionales 1405, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    5. Brindusa Anghel & Sara de la Rica & Aitor Lacuesta, 2013. "Employment polarisation in Spain over the course of the 1997-2012 cycle," Working Papers 1321, Banco de España;Working Papers Homepage.
    6. Vicente Donoso & Víctor Martín & Asier Minondo, 2015. "Does Competition from China Raise the Probability of Becoming Unemployed? An Analysis Using Spanish Workers’ Micro-Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(2), pages 373-394, January.
    7. Anghel, Brindusa & de la Rica, Sara & Lacuesta, Aitor, 2013. "Employment Polarization in Spain along the Cycle 1997-2012," IZA Discussion Papers 7816, Institute for the Study of Labor (IZA).
    8. repec:ucm:wpaper:05-14 is not listed on IDEAS

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