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http://hdl.handle.net/10609/109851
Title: Regional heterogeneity in wage distributions. Evidence from Spain
Author: Motellón Corral, Elisabet  
López Bazo, Enrique
El-Attar Vilalta, Mayssun
Others: Universitat Oberta de Catalunya
European University Institute
Universitat de Barcelona
Keywords: regional labour markets
human capital
wage
gap decomposition
counterfactual distributions
Issue Date: Mar-2009
Publisher: IREA Working Papers
Citation: Motellón, E., López Bazo, E. & El-Attar, M. (2009). Regional heterogeneity in wage distributions. Evidence from Spain. IREA Working Papers 200903, University of Barcelona, Research Institute of Applied Economics
Project identifier: info:eu-repo/grantAgreement/ECO2008-05314/ECON
Also see: http://www.ub.edu/irea/working_papers/2009/200903.pdf
Abstract: 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.
Language: English
URI: http://hdl.handle.net/10609/109851
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