Interregional wage differences in Spain. A microdata analysis for 1990

Interregional wage differences in the Spanish economy are of considerable magnitude. More precisely the average wage in Madrid is 69% higher than in Murcia and the figure for Cataluña is 47% higher. The main objective of this paper is to explain these differences. In order to do so, we estimate enla...

Full description

Bibliographic Details
Authors: Sanromà, Esteve; Ramos Lobo, Raúl
Format: Article
Status:Accepted version
Publication date:1999
Country:España
Institution:Universidad de Barcelona
Repository:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/69542
Online Access:https://hdl.handle.net/2445/69542
Access Level:Open access
Keyword:Mercat de treball
Salaris
Igualtat retributiva
Contractes de treball
Labor market
Wages
Pay equity
Labor contract
_version_ 1878730399772835840
author Sanromà, Esteve
author2 Ramos Lobo, Raúl
author2_role author
author_browse Ramos Lobo, Raúl
Sanromà, Esteve
author_facet Sanromà, Esteve
Ramos Lobo, Raúl
author_role author
collection Dipòsit Digital de la UB
description Interregional wage differences in the Spanish economy are of considerable magnitude. More precisely the average wage in Madrid is 69% higher than in Murcia and the figure for Cataluña is 47% higher. The main objective of this paper is to explain these differences. In order to do so, we estimate enlarged Mincer equations and study the quantitative importance of the 'territorial effect' on wages. Then we attempt to explain these effects as compensatory differences or as a result of existent disequilibrium in the provincial labour markets. The evidence obtained allows us to determine the magnitude of the 'territorial effect.' Once the influence of the individual and job characteristics are controlled for, there still remain positive differences slightly greater than 24% between the provinces of Barcelona and Sevilla and about 13% between Madrid and Sevilla. These wage differences are compensating to some extent for differences in the levels of prices, but they do not correspond to the unequal attraction of the Spanish provinces. The differences are explained, finally, by the unequal level of prices and by the irregular distribution of unemployment between provinces, which is shown to have a negative effect on wages close to the magnitude estimated by Blanchflower/Oswald (1994).
eu_rights_str_mv openAccess
format article
id ES_1b8a4cc90fd2b5616425d1dfd83fd4d2
institution Universidad de Barcelona
instname_str Universidad de Barcelona
network_acronym_str ES
network_name_str España
oai_identifier_str oai:diposit.ub.edu:2445/69542
publishDate 1999
publishDateSort 1999
publisher Physica-Verlag
publisherStr Physica-Verlag
reponame_str Dipòsit Digital de la UB
spelling Interregional wage differences in Spain. A microdata analysis for 1990 Sanromà, Esteve Ramos Lobo, Raúl Mercat de treball Salaris Igualtat retributiva Contractes de treball Labor market Wages Pay equity Labor contract Interregional wage differences in the Spanish economy are of considerable magnitude. More precisely the average wage in Madrid is 69% higher than in Murcia and the figure for Cataluña is 47% higher. The main objective of this paper is to explain these differences. In order to do so, we estimate enlarged Mincer equations and study the quantitative importance of the 'territorial effect' on wages. Then we attempt to explain these effects as compensatory differences or as a result of existent disequilibrium in the provincial labour markets. The evidence obtained allows us to determine the magnitude of the 'territorial effect.' Once the influence of the individual and job characteristics are controlled for, there still remain positive differences slightly greater than 24% between the provinces of Barcelona and Sevilla and about 13% between Madrid and Sevilla. These wage differences are compensating to some extent for differences in the levels of prices, but they do not correspond to the unequal attraction of the Spanish provinces. The differences are explained, finally, by the unequal level of prices and by the irregular distribution of unemployment between provinces, which is shown to have a negative effect on wages close to the magnitude estimated by Blanchflower/Oswald (1994). Physica-Verlag https://hdl.handle.net/2445/69542
spellingShingle Interregional wage differences in Spain. A microdata analysis for 1990
Sanromà, Esteve
Mercat de treball
Salaris
Igualtat retributiva
Contractes de treball
Labor market
Wages
Pay equity
Labor contract
status_str acceptedVersion
title Interregional wage differences in Spain. A microdata analysis for 1990
title_full Interregional wage differences in Spain. A microdata analysis for 1990
title_fullStr Interregional wage differences in Spain. A microdata analysis for 1990
title_full_unstemmed Interregional wage differences in Spain. A microdata analysis for 1990
title_short Interregional wage differences in Spain. A microdata analysis for 1990
title_sort Interregional wage differences in Spain. A microdata analysis for 1990
topic Mercat de treball
Salaris
Igualtat retributiva
Contractes de treball
Labor market
Wages
Pay equity
Labor contract
topic_facet Mercat de treball
Salaris
Igualtat retributiva
Contractes de treball
Labor market
Wages
Pay equity
Labor contract
url https://hdl.handle.net/2445/69542