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Collective bargaining and regional wage differences in Spain: An empirical analysis

  • Hipólito J. Simón

    ()

    (Instituto de Economía Internacional; Universidad de Alicante)

  • Raúl Ramos

    ()

    (AQR; Universitat de Barcelona (UB))

  • Esteve Sanromà

    ()

    (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB))

This article analyses the importance of labour market institutions and, in particular, collective wage bargaining in shaping regional wage differences in the Spanish labour market. Using microdata from the Spanish Structure of Earnings Survey, our results reveal that there are significant inter-regional wage differences for similarly skilled workers. These differences are present throughout the whole wage structure and can be explained by both competitive and non-competitive factors, such as an insufficient competition in product markets. In this context, industry-level collective bargaining plays a major role in accounting for regional wage differences, a role that in the Spanish case is enhanced due to its unusual regional dimension.

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Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2005/7.

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Length: 29 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:ieb:wpaper:159353art102
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