The effects of minimum bargained wages on earnings: Evidence from Spain

This article analyses the importance of labour market institutions and, in particular, collective wage bargaining in shaping regional wage differences in the Spanish labour market. Using microdata from the Spanish Structure of Earnings Survey, our results reveal that there are significant inter-regional wage differences for similarly skilled workers. These differences are present throughout the whole wage structure and can be explained by both competitive and non-competitive factors, such as insufficient competition in product markets. In this context, industry-level collective bargaining plays a major role in accounting for regional wage differences, a role that in the Spanish case is enhanced due to its unusual regional dimension.

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Collective bargaining and regional wage differences in Spain: an empirical analysis

This paper analyses the effect of collective bargaining on within-firm wage dispersion for the case of Spain. What is relevant in the Spanish case is to compare the effect of the two basic levels of bargaining (firm and sector) on wage dispersion. By using the Oaxaca-Blinder decomposition, this paper concludes that collective agreements at firm level have a negative effect on wage dispersion. At the same time, firms that have signed these types of agreements show greater wage dispersion than those covered by agreements at the sector level, owing to the positive and compensating effect of firms' and workers' features.

Collective Bargaining and Within‐firm Wage Dispersion in Spain

The paper analyses the wage differentials among different Spanish regions. Hedonic wage equations are first formulated for those regions and then the wage decomposition method is applied, which allows separation of the effects due to characteristics from those due to returns. The results show that in the Centre and South, half of the wage differential corresponds to each concept, whereas in the North and East the difference is due more to the different remuneration than to the different characteristics. The variables that exert greatest influence on the characteristic differences are seniority, possessing a university degree, the command of a second language, the sector of activity, the supervisory tasks undertaken and the occupation. With respect to the different returns, the largest differences correspond to remuneration for seniority, a second language, the sector of activity, the working hours and discrimination by gender.

Inter-regional wage differentials in Spain

Bande R., Fernandez M. and Montuenga V. M. (2007) Regional disparities in the unemployment rate: the role of the wage-setting mechanism in Spain, 1987–92, Regional Studies 41, –. The aim of this paper is to show how regional unemployment disparities in Spain widen during economic upturns and to provide an explanation of this behaviour. The analysis is based on the study of the wage-setting mechanism that allows an estimation of the responses of wages to both labour productivity and the general situation of the labour market, and an assessment of their impact on the evolution of regional unemployment. The results of this estimation at the regional level with manufacturing data confirm the existence of marked differences between industries and between regions these responses. These differences can be interpreted as a distinctive wage-setting mechanism across industries and regions, which may explain the evolution of unemployment rates within the regional labour markets. Bande R., Fernandez M. et Montuenga V...

Regional Disparities in the Unemployment Rate: The Role of the Wage-setting Mechanism in Spain, 1987–92

Diferencias interterritoriales de salarios y negociación colectiva en España

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Diferencias interterritoriales de salarios y negociación colectiva en España

Margen precio-coste medio variable y poder de monopolio