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A Demand-Supply Analysis of the Spanish Education Wage Premium in the 1980s and 1990s


  • Manuel A. Hidalgo

    () (Department of Economics, Universidad Pablo de Olavide)


We estimate the demand for education in Spain, and use the estimated demand curve to analyze whether the evolution of the education wage premium in the 1980s and 1990s can be explained by a demand-supply framework. We find that growth in the demand for education in the 1980s was very similar to growth in the 1990s. Our empirical results show that difference in the evolution of the education wage premium between the two decades can be explained by combining observed changes in labor supply with steady labor demand growth.

Suggested Citation

  • Manuel A. Hidalgo, 2008. "A Demand-Supply Analysis of the Spanish Education Wage Premium in the 1980s and 1990s," Working Papers 08.01, Universidad Pablo de Olavide, Department of Economics.
  • Handle: RePEc:pab:wpaper:08.01

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    References listed on IDEAS

    1. García-Pérez, J. Ignacio & Jiménez-Martín, Sergi & Sánchez-Martín, Alfonso R., 2013. "Retirement incentives, individual heterogeneity and labor transitions of employed and unemployed workers," Labour Economics, Elsevier, vol. 20(C), pages 106-120.
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    6. John Rust & Christopher Phelan, 1997. "How Social Security and Medicare Affect Retirement Behavior in a World of Incomplete Markets," Econometrica, Econometric Society, vol. 65(4), pages 781-832, July.
    7. Jean-Olivier Hairault & Francois Langot & Thepthida Sopraseuth, 2010. "Distance to Retirement and Older Workers' Employment: The Case for Delaying the Retirement Age," Journal of the European Economic Association, MIT Press, vol. 8(5), pages 1034-1076, September.
    8. Rebollo-Sanz, Yolanda, 2012. "Unemployment insurance and job turnover in Spain," Labour Economics, Elsevier, vol. 19(3), pages 403-426.
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    Cited by:

    1. Manuel Hidalgo Pérez & Walter García-Fontes, 2009. "Estimating Human Capital Externalities:The Case of Spanish Regions," Working Papers 09.17, Universidad Pablo de Olavide, Department of Economics.
    2. Manuel A. Hidalgo Pérez & Jesús Rodríguez López & José Mª O.Kean Alonso, 2008. "Labor demand and information technologies: evidence for Spain, 1980-2005," Economic Working Papers at Centro de Estudios Andaluces E2008/13, Centro de Estudios Andaluces.
    3. 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.

    More about this item


    wage premium; relative demand; relative supply;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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