Spain Is Different: Falling Trends Of Inequeality
In this article we characterize the evolution of inequality in hourly wages, hours of work, labor earnings, household disposable income and household consumption for Spain between 1985 and 2000. We look at both the Encuesta Continua de Presupuestos Familiares and the European Household Community Panel. Our analysis shows that inequality in individual net labor earnings and household net disposable income has decreased substantially. The decreases in the tertiary education premium and in the unemployment rate have been key ingredients to understand this falling trend. However, the inequality reduction has not been monotonic over the period: while it fell in years of economic expansion, there was an inequality surge in the recession of the early nineties. Public transfers have played a crucial role in smoothing out the inequality arising in the labor market, but instead the Spanish family does not seem to have been an important insurance mechanism. Regarding household consumption, inequality has fallen much less than inequality in household net disposable income, with the decrease mostly concentrated in the second half of the eighties. This suggests that the reduction in income inequality has affected the sources of permanent differences between households only during the second half of the eighties. Our estimates of the earnings process for the period are consistent with this view.
|Date of creation:||Sep 2009|
|Contact details of provider:|| Postal: Casado del Alisal, 5, 28014 Madrid|
Web page: http://www.cemfi.es/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Josep Pijoan-Mas, 2003.
"Precautionary Savings Or Working Longer Hours?,"
- Josep Pijoan-Mas & Virginia Sanchez-Marcos, 2010.
"Spain is Different: Falling Trends of Inequality,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 154178-1541, January.
- Josep Pijoan-Mas & Virginia Sánchez-Marcos, 2009. "Spain Is Different: Falling Trends Of Inequeality," Working Papers wp2009_0910, CEMFI.
- Pijoan-Mas, Josep & Sánchez-Marcos, Virginia, 2009. "Spain is Different: Falling Trends of Inequality," CEPR Discussion Papers 7489, C.E.P.R. Discussion Papers.
- Josep Pijoan-Mas & Virginia Sanchez-Marcos, 2009. "Code and data files for "Spain is Different: Falling Trends of Inequality"," Computer Codes 09-199, Review of Economic Dynamics.
- Fatih Guvenen, 2004. "Learning your Earning: Are Labor Income Shocks Really That Persistent?," 2004 Meeting Papers 177, Society for Economic Dynamics.
- Heathcote, Jonathan & Storesletten, Kjetil & Violante, Giovanni L, 2004.
"Two Views of Inequality Over the Life-Cycle,"
CEPR Discussion Papers
4728, C.E.P.R. Discussion Papers.
- Hyeok Jeong & Yong Kim & Iourii Manovskii, 2015.
"The Price of Experience,"
American Economic Review,
American Economic Association, vol. 105(2), pages 784-815, February.
- MaCurdy, Thomas E., 1982. "The use of time series processes to model the error structure of earnings in a longitudinal data analysis," Journal of Econometrics, Elsevier, vol. 18(1), pages 83-114, January.
- Olympia Bover, 2008.
"Wealth inequality and household structure: US vs. Spain,"
0804, Banco de España;Working Papers Homepage.
- Olympia Bover, 2010. "Wealth Inequality And Household Structure: U.S. Vs. Spain," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(2), pages 259-290, 06.
- Bover, Olympia, 2008. "Wealth inequality and household structure: US vs. Spain," CEPR Discussion Papers 6680, C.E.P.R. Discussion Papers.
- Richard Blundell & Luigi Pistaferri & Ian Preston, 2008.
"Consumption Inequality and Partial Insurance,"
American Economic Review,
American Economic Association, vol. 98(5), pages 1887-1921, December.
- Pedro Albarrán & Raquel Carrasco & Maite Martínez-Granado, 2007.
"Inequality for Wage Earners and Self-Employed: Evidence from Panel Data,"
0734, Banco de España;Working Papers Homepage.
- Pedro Albarran & Raquel Carrasco & Maite Martinez-Granado, 2009. "Inequality for Wage Earners and Self-Employed: Evidence from Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(4), pages 491-518, 08.
- Martínez Granado, María Teresa & Albarrán, Pedro & Carrasco, Raquel, 2007. "Inequality for Wage Earners and Self-Employed: Evidence from Panel Data," DFAEII Working Papers 2007-02, University of the Basque Country - Department of Foundations of Economic Analysis II.
- Albarrán, Pedro & Carrasco, Raquel & Martínez-Granado, Maite, 2007. "Inequality for wage earners and self-employed : evidence from panel data," UC3M Working papers. Economics we072414, Universidad Carlos III de Madrid. Departamento de Economía.
- Sara Rica & Juan Dolado & Vanesa Llorens, 2008.
"Ceilings or floors? Gender wage gaps by education in Spain,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 21(3), pages 751-776, July.
- Sara Rica & Juan Dolado & Vanesa Llorens, 2008. "Ceilings or floors? Gender wage gaps by education in Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 777-778, July.
- John M. Abowd & David Card, 1986.
"On the Covariance Structure of Earnings and Hours Changes,"
NBER Working Papers
1832, National Bureau of Economic Research, Inc.
- Abowd, John M & Card, David, 1989. "On the Covariance Structure of Earnings and Hours Changes," Econometrica, Econometric Society, vol. 57(2), pages 411-45, March.
- Manuel A. Hidalgo, 2008. "Wage Inequality in Spain, 1980-2000," Working Papers 08.08, Universidad Pablo de Olavide, Department of Economics.
- Zvi Eckstein & Éva Nagypál, 2004. "The evolution of U.S. earnings inequality: 1961?2002," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Dec, pages 10-29.
- Josep Oliver Alonso & Xavier Ramos & José Luis Raymond-Bara, 2001. "Recent trends in Spanish Income Distribution: A Robust Picture of Falling Income Inequality," Working Papers wp0107, Department of Applied Economics at Universitat Autonoma of Barcelona.
- Richard Blundell & Ian Preston, 1997.
"Consumption, inequality and income uncertainty,"
IFS Working Papers
W97/15, Institute for Fiscal Studies.
- José María Casado García, 2008.
"From Income to Consumption: Measuring Households Partial Insurance,"
- José Casado, 2011. "From income to consumption: measuring households partial insurance," Empirical Economics, Springer, vol. 40(2), pages 471495-4714, April.
- Orazio Attanasio & Hamish Low & Virginia Sánchez-Marcos, 2005. "Female Labor Supply As Insurance Against Idiosyncratic Risk," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 755-764, 04/05.
When requesting a correction, please mention this item's handle: RePEc:cmf:wpaper:wp2009_0910. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Araceli Requerey)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.