Wage curves for Spain. Evidence from the family budget survey
This study explores the existence of a wage curve for Spain. To quantify this relationship for the Spanish economy, we used individual data from the EPF 1990-1991. The results show the presence of a wage curve with an elasticity of 0.13. The availability of very detailed information on wages and unemployment has also shown that less protected labour market groups young workers, manual workers and building sector workers- have a higher elasticity of wages to local unemployment. These results could be interpreted as a greater facility of firms in these segments to settle wages as a function of the unemployment rate.
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