The Puzzling Fall of the Wage Skill Premium in Spain

46 Pages Posted: 5 Apr 2016

See all articles by Florentino Felgueroso

Florentino Felgueroso

Universidad de Oviedo - Facultad de Economicas; Centre for Economic Policy Research (CEPR)

Manuel Hidalgo‐Pérez

Universidad Pablo de Olavide

Sergi Jimenez-Martin

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Date Written: June 2016

Abstract

In contrast to most EU countries and other developed economies, the wage skill premium has been steadily falling between 1988–2008 in Spain. Using Spanish Social Security data we extend Dustman and Meghir work and find that the fall in the wage skill premium can be explained in part by an increase in the share of college graduates that are mismatched. However, this phenomenon only partially explains the fall in the WSP: differences between high and low‐educated workers in the returns to general experience and firm tenure have been substantially reduced since the end of the 90s.

Suggested Citation

Felgueroso Fernández, Florentino José and Hidalgo‐Pérez, Manuel and Jimenez-Martin, Sergi, The Puzzling Fall of the Wage Skill Premium in Spain (June 2016). The Manchester School, Vol. 84, Issue 3, pp. 390-435, 2016. Available at SSRN: https://ssrn.com/abstract=2759078 or http://dx.doi.org/10.1111/manc.12116

Florentino José Felgueroso Fernández (Contact Author)

Universidad de Oviedo - Facultad de Economicas ( email )

Campus del Cristo, s/n
Oviedo, Asturias 33071
Spain
+34 98 510 3765 (Phone)
+34 98 523 4871 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Manuel Hidalgo‐Pérez

Universidad Pablo de Olavide

Ctra. Utrera, Km.1
Sevilla, 41010
Spain

Sergi Jimenez-Martin

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
(34) 93 542 16 67 (Phone)
(34) 93 542 17 46 (Fax)

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