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Earnings inequality in Spain: new evidence using tax data

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  • St鰨ane Bonhomme
  • Laura Hospido

Abstract

We use tax files from 2004 to 2010 to document the recent evolution of earnings inequality in Spain. We find that inequality went in parallel with the evolution of the unemployment rate during the period. This evolution is consistent with the evidence from Social Security records recently documented in Bonhomme and Hospido (2012). Quantitatively, the 90/10 percentile ratio of daily earnings experienced a 10% increase between 2007 and 2010, which is partly but not fully explained by changes in labour force composition. We also use the tax data to study the evolution of the gender earnings gap, and find that it has decreased throughout the distribution during the period. Lastly, we tentatively exploit the panel dimension of the data to explore the permanent and temporary dimensions of Spanish inequality.

Suggested Citation

  • St鰨ane Bonhomme & Laura Hospido, 2013. "Earnings inequality in Spain: new evidence using tax data," Applied Economics, Taylor & Francis Journals, vol. 45(30), pages 4212-4225, October.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4212-4225
    DOI: 10.1080/00036846.2013.781261
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    1. Nezih Guner & Ezgi Kaya & Virginia Sánchez-Marcos, 2014. "Gender gaps in Spain: policies and outcomes over the last three decades," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 5(1), pages 61-103, March.
    2. Stéphane Bonhomme & Laura Hospido, 2017. "The Cycle of Earnings Inequality: Evidence from Spanish Social Security Data," Economic Journal, Royal Economic Society, vol. 127(603), pages 1244-1278, August.
    3. Raquel Carrasco & Juan F. Jimeno & A. Carolina Ortega, 2011. "Accounting for changes in the Spanish wage distribution: the role of employment Composition effects," Working Papers 1120, Banco de España.
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    6. Antonio Cabrales & Maia Güell & Rocio Madera & Analia Viola, 2024. "University financing: sustainability, efficiency and redistribution," Policy Papers 2024-01, FEDEA.
    7. Carlos Gradín, 2021. "Inequality by Population Groups and Income Sources: Accounting for Inequality Changes in Spain During the Recession," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(2), pages 481-508, June.
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    9. Anghel, Brindusa & de la Rica, Sara & Lacuesta, Aitor, 2013. "Employment Polarization in Spain along the Cycle 1997-2012," IZA Discussion Papers 7816, Institute of Labor Economics (IZA).
    10. Juan Manuel Pérez-Salamero González & Marta Regúlez-Castillo & Carlos Vidal-Meliá, 2017. "The continuous sample of working lives: improving its representativeness," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 8(1), pages 43-95, March.
    11. David R. Agrawal & Dirk Foremny & Clara Martínez-Toledano, 2020. ""Paraísos fiscales", wealth taxation, and mobility," Working Papers 2020/15, Institut d'Economia de Barcelona (IEB).
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    13. Juan Ignacio Martín‐Legendre & Pablo Castellanos‐García & José Manuel Sánchez‐Santos, 2024. "The Dynamics of Inequality and Mobility: A Panel Data Analysis of the Spanish Income Tax," Social Science Quarterly, Southwestern Social Science Association, vol. 105(3), pages 696-708, May.
    14. Brindusa Anghel & Sara de la Rica & Aitor Lacuesta, 2013. "Employment polarisation in Spain over the course of the 1997-2012 cycle," Working Papers 1321, Banco de España.
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