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Collective bargaining and regional wage differences in Spain: an empirical analysis

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  • Hipolito Simon
  • Raul Ramos
  • Esteban Sanroma

Abstract

This article analyses the importance of labour market institutions and, in particular, collective wage bargaining in shaping regional wage differences in the Spanish labour market. Using microdata from the Spanish Structure of Earnings Survey, our results reveal that there are significant inter-regional wage differences for similarly skilled workers. These differences are present throughout the whole wage structure and can be explained by both competitive and non-competitive factors, such as insufficient competition in product markets. In this context, industry-level collective bargaining plays a major role in accounting for regional wage differences, a role that in the Spanish case is enhanced due to its unusual regional dimension.

Suggested Citation

  • Hipolito Simon & Raul Ramos & Esteban Sanroma, 2006. "Collective bargaining and regional wage differences in Spain: an empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1749-1760.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1749-1760
    DOI: 10.1080/00036840500427155
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    Cited by:

    1. Ines P. Murillo Huertas & Raul Ramos & Hipolito Simon, 2017. "Regional Differences in the Gender Wage Gap in Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(3), pages 981-1008, December.
    2. Esteban Sanroma & Raul Ramos, 2007. "Local Human Capital and Productivity: An Analysis for the Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 41(3), pages 349-359.
    3. LILLO, Adelaida & CASADO-DÍAZ, José M., 2010. "On The Rewards To Education In Spain: Endogeneity And Regional Differences," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(3).
    4. Raul Ramos & Catia Nicodemo & Esteve Sanromá, 2015. "A spatial panel wage curve for Spain," Letters in Spatial and Resource Sciences, Springer, vol. 8(2), pages 125-139, July.
    5. Ángel L. Martín‐Román & Jaime Cuéllar‐Martín & Alfonso Moral, 2023. "Natural and cyclical unemployment: A stochastic frontier decomposition and economic policy implications," Bulletin of Economic Research, Wiley Blackwell, vol. 75(1), pages 5-39, January.
    6. Cuéllar Martín, Jaime & Martín-Román, Ángel L. & Moral, Alfonso, 2017. "A composed error model decomposition and spatial analysis of local unemployment," MPRA Paper 79783, University Library of Munich, Germany.
    7. João Pereira & Aurora Galego, 2014. "Inter-Regional Wage Differentials in Portugal: An Analysis Across the Wage Distribution," Regional Studies, Taylor & Francis Journals, vol. 48(9), pages 1529-1546, September.
    8. Hans R. A. Koster, 2013. "Rocketing Rents The magnitude and attenuation of agglomeration economies in the commercial property market," SERC Discussion Papers 0125, Centre for Economic Performance, LSE.
    9. Inés P. Murillo Huertas & Raúl Ramos & Hipólito Simón, 2020. "Revisiting interregional wage differentials: New evidence from Spain with matched employer‐employee data," Journal of Regional Science, Wiley Blackwell, vol. 60(2), pages 296-347, March.
    10. Joanna María Bashford-Fernández & Ana Rodríguez-Álvarez, 2019. "Wage Frontiers in Pre and Post-crisis Spain: Implications for Welfare and Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(2), pages 579-608, June.
    11. Rycx, François & Saks, Yves & Tojerow, Ilan, 2016. "Misalignment of Productivity and Wages across Regions? Evidence from Belgian Matched Panel Data," IZA Discussion Papers 10336, Institute of Labor Economics (IZA).
    12. Esteban Sanroma & Raul Ramos, 2007. "Local Human Capital and Productivity: An Analysis for the Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 41(3), pages 349-359.
    13. Inés P. Murillo & Hipólito Simón, 2014. "La Gran Recesión y el diferencial salarial por género en España," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 39-76, March.
    14. José L. Groizard & Xisco Oliver & María Sard, 2022. "An account of the exporter wage gap: Wage structure and composition effects across the wage distribution," The World Economy, Wiley Blackwell, vol. 45(5), pages 1528-1563, May.
    15. Mahmood Arai & Fredrik Heyman, 2009. "Microdata evidence on rent-sharing," Applied Economics, Taylor & Francis Journals, vol. 41(23), pages 2965-2976.
    16. Aurora Galego & João Pereira, 2014. "Decomposition of Regional Wage Differences Along the Wage Distribution in Portugal: The Importance of Covariates," Environment and Planning A, , vol. 46(10), pages 2514-2532, October.
    17. Hipólito Simón, 2009. "La desigualdad salarial en España: Una perspectiva internacional y temporal," Investigaciones Economicas, Fundación SEPI, vol. 33(3), pages 439-471, September.
    18. Díaz Serrano, Lluís, 2015. "What explains productivity differentials across spanish cities?," Working Papers 2072/247805, Universitat Rovira i Virgili, Department of Economics.
    19. Ismael Ahamdanech Zarco & Carmelo García Pérez & Hipólito Simón Pérez, 2010. "Wage inequality in Spain: A regional perspective," Working Papers 2010/24, Institut d'Economia de Barcelona (IEB).
    20. Jean-Guy LORANGER & Gérard BOISMENU, 2010. "A Dynamic Institutional Analysis with a Macroeconomic Model," EcoMod2010 259600107, EcoMod.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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