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Explaining the fall of the skill wage premium in Spain

Author

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  • Florentino Felgueroso
  • Manuel Hidalgo
  • SergiJiménez Martín

Abstract

The main purpose of this work is to document the driven forces of the fall in the wage skill premium (WSP) in Spain in the last two decades. We show that the increase of occupational mismatch helps to explain the downward trend in university returns since the mid-80s. In the second part of the 90s and during the last decade, the decrease of labor market experience and firm tenure among well-matched workers, due to the extensive use of temporary contracts, also contributes to explain the fall of the WSP.

Suggested Citation

  • Florentino Felgueroso & Manuel Hidalgo & SergiJiménez Martín, 2010. "Explaining the fall of the skill wage premium in Spain," Working Papers 2010-19, FEDEA.
  • Handle: RePEc:fda:fdaddt:2010-19
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The falling college premium in Spain
      by Economic Logician in Economic Logic on 2010-08-26 19:10:00
    2. El mercado de trabajo en la Gran Recesión (II): los salarios y el efecto composición
      by Florentino Felgueroso in Nada Es Gratis on 2011-07-08 10:43:20
    3. ¿Vale la pena estudiar? (VI) La inusual caída de la ganancia salarial resultante de la educación avanzada
      by Luis Garicano in Nada Es Gratis on 2010-12-09 05:30:40

    Citations

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    Cited by:

    1. Aitor Lacuesta & Sergio Puente & Ernesto Villanueva, 2020. "The schooling response to a sustained increase in low-skill wages: evidence from Spain 1989–2009," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 11(4), pages 457-499, December.
    2. Inmaculada García-Mainar & Víctor M. Montuenga-Gómez, 2017. "Subjective educational mismatch and signalling in Spain," Documentos de Trabajo dt2017-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    3. Stéphane Bonhomme & Laura Hospido, 2017. "The Cycle of Earnings Inequality: Evidence from Spanish Social Security Data," Economic Journal, Royal Economic Society, vol. 127(603), pages 1244-1278, August.
    4. Raquel Carrasco & Juan F. Jimeno & A. Carolina Ortega, 2011. "Accounting for changes in the Spanish wage distribution: the role of employment Composition effects," Working Papers 1120, Banco de España.
    5. Ada Ferrer-i-carbonell & X. Ramos & M. Oviedo, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Spain," GINI Country Reports spain, AIAS, Amsterdam Institute for Advanced Labour Studies.
    6. Manuel Hidalgo-Pérez & Walter García-Fontes, 2014. "Estimating Human Capital Externalities: The Case of the Spanish Provinces, 1995-2010," Working Papers 14.06, Universidad Pablo de Olavide, Department of Economics.
    7. Carrasco, Raquel & Jimeno, Juan F. & Ortega, Ana Carolina, 2012. "Declining returns to skill and the distribution of wages : Spain 1995-2006," UC3M Working papers. Economics we1231, Universidad Carlos III de Madrid. Departamento de Economía.
    8. Florentino Felgueroso & Manuel Hidalgo-Pérez & Sergi Jiménez-Martín, 2016. "The Puzzling Fall of the Wage Skill Premium in Spain," Manchester School, University of Manchester, vol. 84(3), pages 390-435, June.
    9. Bande, Roberto & Fernández, Melchor & Montuenga , Víctor, 2012. "Wage flexibility and local labour markets: a test on the homogeneity of the wage curve in Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 24, pages 175-198.
    10. Addabbo, Tindara & Rodríguez-Modroño, Paula & Gálvez-Muñoz, Lina, 2015. "Young people living as couples: How women's labour supply is adapting to the crisis. Spain as a case study," Economic Systems, Elsevier, vol. 39(1), pages 27-42.
    11. Anita Wölfl & Juan S. Mora-Sanguinetti, 2011. "Reforming the Labour Market in Spain," OECD Economics Department Working Papers 845, OECD Publishing.
    12. Tindara Addabbo & Paula Rodr íguez-Modroño & Lina Gálvez-Muñoz, 2014. "Youth living in a couple. How women's labour supply adapts to the crisis. The case of Spain," Center for the Analysis of Public Policies (CAPP) 0114, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".

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