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Regional heterogeneity in wage distributions. Evidence from Spain.
Motellón Corral, Elisabet; López-Bazo, Enrique; El-Attar, Mayssun
Regional differences in real wages have been shown to be both large and persistent in the U.S. and the U.K., as well as in the economies of other countries. Empirical evidence suggests that wage differentials adjusted for the cost of living cannot only be explained by the unequal spatial distribution of characteristics determining earnings. Rather, average wage gap decomposition reveals the important contribution made by regional heterogeneity in the price assigned to these characteristics. This paper proposes a method for assessing regional disparities in the entire wage distribution and for decomposing the effect of differences across regions in the endowments and prices of the characteristics. The hypothesis forwarded is that the results from previous studies obtained by comparing average regional wages may be partial and nonrobust. Empirical evidence from a matched employer-employee dataset for Spain confirms marked differences in wage distributions between regions, which do not result from worker and firm characteristics but from the increasing role of regional differences in the return to human capital.
Salaris
Igualtat retributiva
Economia regional
Comptabilitat regional
Recursos humans
Wages
Pay equity
Regional economics
Regional accounting
Human capital
cc-by-nc-nd, (c) Motellón et al., 2009
http://creativecommons.org/licenses/by-nc-nd/3.0/
Documento de trabajo
Universitat de Barcelona. Institut de Recerca en Economia Aplicada Regional i Pública
         

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