Revisiting interregional wage differentials: New evidence from Spain with matched employer‐employee data. (23rd July 2019)

• Record Type: Journal Article
• Authors: Murillo Huertas, Inés P.; Ramos, Raúl; Simón, Hipólito
• Is Part Of: Journal of regional science. Volume 60:Number 2(2020)
• Page Start: 296
• Page End: 347
• Publication Date: 2019-07-23
• Subjects: decomposition methods -- interregional wage differentials -- matched employer‐employee data -- wage setting institutions; decomposition methods -- interregional wage differentials -- matched employer‐employee data -- wage setting institutions; Economics -- Research -- Periodicals; Regional planning -- Periodicals; 330.072
• DOI: 10.1111/jors.12459
• Languages: English
• ISSNs: 0022-4146

Abstract

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.