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How Do the Skilled and the Unskilled Respond to Regional Shocks? the Case of Spain

Author

Listed:
  • Mr. Paolo Mauro
  • Mr. Antonio Spilimbergo

Abstract

Are there any differences in how workers of different skill levels respond to regional shocks? This paper addresses that question using the methodology of Blanchard and Katz (1992) and a unique data set on working-age population, labor force, and employment for five educational groups (ranging from the illiterate to the college-educated) over 1964-92 for the 50 Spanish provinces. The paper finds that the high-skilled migrate very promptly in response to a decline in regional labor demand, while the low-skilled drop out of the labor force or stay unemployed.

Suggested Citation

  • Mr. Paolo Mauro & Mr. Antonio Spilimbergo, 1998. "How Do the Skilled and the Unskilled Respond to Regional Shocks? the Case of Spain," IMF Working Papers 1998/077, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1998/077
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    Keywords

    WP; wage; real wage; regional unemployment; skill level; Spain; wage pressure; wage agreement; sectoral wage increase; unemployment difference; set wage; adult wage; decentralization of the wage; unemployment imbalance; wages in high-unemployment; Unemployment rate; Unemployment; Labor markets; Wages; Labor costs; Europe;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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