Wage flexibility and local labour markets: a test on the homogeneity of the wage curve in Spain

In this paper we analyse wage flexibility in Spain and its regional differences, departing from the estimation of wage curves. Using data from the Structure of Earnings Survey for 1995, 2002 and 2006, we estimate regional wage equations, relating the observed wage received by workers to a group of p...

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Detalles Bibliográficos
Autores: Bande Ramudo, Roberto, Fernández Fernández, Melchor, Montuenga Gómez, Víctor Manuel
Tipo de recurso: artículo
Fecha de publicación:2012
País:España
Institución:Universidad de Alcalá (UAH)
Repositorio:e_Buah Biblioteca Digital Universidad de Alcalá
Idioma:inglés
OAI Identifier:oai:ebuah.uah.es:10017/27082
Acceso en línea:http://hdl.handle.net/10017/27082
Access Level:acceso abierto
Palabra clave:Wage flexibility
Wage curve
Structure of Earnings Survey
Regional unemployment
Flexibilidad salarial
Curva de salarios
Encuesta de Estructura Salarial
Desempleo regional
Economía
Geografía
Sociología
Economics
Geography
Sociology
Descripción
Sumario:In this paper we analyse wage flexibility in Spain and its regional differences, departing from the estimation of wage curves. Using data from the Structure of Earnings Survey for 1995, 2002 and 2006, we estimate regional wage equations, relating the observed wage received by workers to a group of personal and job characteristics, as well as to the regional unemployment rate. This analysis allows us to test for the existence of regional differences in the degree of wage flexibility, which may have an important influence on the evolution of regional unemployment, given its impact on the ability of the local labour market to absorb negative shocks. Estimated results indicate that regions suffering from higher unemployment rates exhibit lower wage flexibility. Collective bargaining reforms should pursue greater wage flexibility, especially in regions with high rates of joblessness.