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Minimum wages, collective bargaining and wage dispersion : the spanish case

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  • Felgueroso, Florentino
  • Jimeno, Juan F.

Abstract

Recent empirical work on the employment effects of minimum wages in Spain has shown negative, albeit not large, effects on youth and low skilled-workers'employment prospects. In this paper we tackle this issue in greater depth. Specifically, we analyse how collective wage bargaining, by fixing minimum wages above statutory ones, affects the overall wage structure and employment. We develop a simple model with monopsonistic features, resulting in externalities in wage-setting by firms, which may give rise to wider wage dispersion than that implied by the introduction of minimum wages.

Suggested Citation

  • Felgueroso, Florentino & Jimeno, Juan F., 1997. "Minimum wages, collective bargaining and wage dispersion : the spanish case," UC3M Working papers. Economics 10496, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:10496
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    References listed on IDEAS

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    1. Dickens, Richard & Machin, Stephen & Manning, Alan, 1998. "Estimating the effect of minimum wages on employment from the distribution of wages: A critical view," Labour Economics, Elsevier, vol. 5(2), pages 109-134, June.
    2. Juan Dolado & Francis Kramarz & Steven Machin & Alan Manning & David Margolis & Coen Teulings, 1996. "The Economic Impact of Minimum Wages in Europe," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00353896, HAL.
    3. Meyer, Robert H & Wise, David A, 1983. "Discontinuous Distributions and Missing Persons: The Minimum Wage and Unemployed Youth," Econometrica, Econometric Society, vol. 51(6), pages 1677-1698, November.
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    Cited by:

    1. de la Rica, Sara & Dolado, Juan J. & Vegas, Raquel, 2010. "Performance Pay and the Gender Wage Gap: Evidence from Spain," IZA Discussion Papers 5032, Institute of Labor Economics (IZA).
    2. Sara De La Rica & Juan J. Dolado & Raquel Vegas, 2015. "Gender Gaps in Performance Pay : New Evidence from Spain," Annals of Economics and Statistics, GENES, issue 117-118, pages 41-59.
    3. Rafael Muñoz, "undated". "Skilled and unskilled employment in a Spanish business cycle model," Studies on the Spanish Economy 20, FEDEA.

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