Revisiting Interregional Wage Differentials: New Evidence from Spain with Matched Employer‐Employee Data

52 Pages Posted: 29 May 2020

See all articles by Inés P. Murillo Huertas

Inés P. Murillo Huertas

University of Extremadura

Raul Ramos

University of Barcelona - AQR; IZA Institute of Labor Economics

Hipólito Simón

affiliation not provided to SSRN

Date Written: March 2020

Abstract

This article examines wage differences across Spain's NUTS‐2 regions along the entire wage distribution based on matched employer‐employee microdata from 2006 to 2014. Unlike previous related studies, we properly control for differences in regional purchasing power parities, which are very large in practice. Although part of the raw regional wage differences observed is explained by differences between regions in productive structures, and, to a much lesser extent, in labor forces, noteworthy, very similar throughout the wage distribution regional differences net of composition effects arise even after controlling for a broad set of individual and firm characteristics.

Keywords: decomposition methods, interregional wage differentials, matched employer‐employee data, wage setting institutions, decomposition methods, interregional wage differentials, matched employer‐employee data, wage setting institutions

Suggested Citation

Murillo Huertas, Inés P. and Ramos, Raul and Simón, Hipólito, Revisiting Interregional Wage Differentials: New Evidence from Spain with Matched Employer‐Employee Data (March 2020). Journal of Regional Science, Vol. 60, Issue 2, pp. 296-347, 2020, Available at SSRN: https://ssrn.com/abstract=3611143 or http://dx.doi.org/10.1111/jors.12459

Inés P. Murillo Huertas (Contact Author)

University of Extremadura ( email )

Avenida de la Universidad s/n
Caceres, 10071
Spain

Raul Ramos

University of Barcelona - AQR ( email )

Dpt. Econometrics, Statistics and Spanish Economy
Avda. Diagonal 690
Barcelona, Barcelona 08034
Spain

HOME PAGE: http://www.raulramos.cat

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Hipólito Simón

affiliation not provided to SSRN

No Address Available

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