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Wage inequality in Spain: A regional perspective

  • Ismael Ahamdanech
  • Carmelo García-Pérez
  • Hipolito Simon

    ()

The research examines wage inequality in the Spanish labour market from a regional perspective, drawing on stochastic dominance techniques. The field of study is of particular interest because wage determination in Spain incorporates an important territorial component, facilitated by certain specific institutional elements, given that Spain is one of the few developed countries in which collective bargaining is mainly developed through industry-wide agreements on an infra-national scale applied exclusively to provinces or regions. The main empirical findings are that wage inequality exhibits a significant regional heterogeneity and that both regional differences in workforce heterogeneity and the mix of jobs and workplaces and differences in their wage returns are influential factors in the explanation of regional heterogeneity in the levels of wage inequality. Consequently, the infrequent regional dimension of collective bargaining on an industry level implies the presence in Spain of wage determination mechanisms that are differentiated by region, which give rise to the existence of significant differences in regional wage structures.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p1074.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa11p1074
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  1. Du Caju, Philip & Gautier, Erwan & Momferatou, Daphne & Ward-Warmedinger, Melanie E., 2008. "Institutional Features of Wage Bargaining in 23 European Countries, the US and Japan," IZA Discussion Papers 3867, Institute for the Study of Labor (IZA).
  2. Samuel Bentolila, . "Internal migration in Spain," Working Papers 2001-07, FEDEA.
  3. Beach, Charles M. & Chow, K. Victor & Formby, John P. & Slotsve, George A., 1994. "Statistical inference for decile means," Economics Letters, Elsevier, vol. 45(2), pages 161-167, June.
  4. Inmaculada Garcia & Jose Alberto Molina, 2002. "Inter-regional wage differentials in Spain," Applied Economics Letters, Taylor & Francis Journals, vol. 9(4), pages 209-215.
  5. Roberto Bande & Melchor Fernandez & Víctor Manuel Montuenga, 2005. "Regional Unemployment in Spain - Disparities, Business Cycle and Wage Setting," ERSA conference papers ersa05p489, European Regional Science Association.
  6. Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710 Elsevier.
  7. Hipólito J. Simón & Raúl Ramos & Esteve Sanromà, 2005. "Collective bargaining and regional wage differences in Spain: An empirical analysis," Working Papers 2005/7, Institut d'Economia de Barcelona (IEB).
  8. Beach, Charles M & Davidson, Russell, 1983. "Distribution-Free Statistical Inference with Lorenz Curves and Income Shares," Review of Economic Studies, Wiley Blackwell, vol. 50(4), pages 723-35, October.
  9. Mario Izquierdo & Aitor Lacuesta, 2006. "Wage inequality in Spain: recent developments," Banco de Espa�a Working Papers 0615, Banco de Espa�a.
  10. Lorenzo Serrano Martínez, 1999. "- Salarios Regionales Y Dotaciones De Capital Humano," Working Papers. Serie EC 1999-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  11. Jimeno, Juan F. & Bentolila, Samuel, 1998. "Regional unemployment persistence (Spain, 1976-1994)," Labour Economics, Elsevier, vol. 5(1), pages 25-51, March.
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