A Spatial Panel Wage Curve for Spain
نویسندگان
چکیده
Most empirical studies on the Spanish wage curve have ignored the possible spatial interaction effects between the regions. This paper reconsiders the Spanish wage curve using more recent data than previous studies and taking into account the role of regional spillovers. From a methodological perspective, we apply the two-step procedure proposed by Bell et al (2000) to estimate a dynamic wage curve with spatial spillovers. In a first stage, we use microdata from the Spanish Social Security Records (Muestra Continua de Vidas Laborales) to obtain composition-corrected wages that are used in a second stage to estimate a wage curve over the period 2000-2010 allowing for spatial effects of unemployment across regions. Opposite to previous studies, we find that the wage equation is highly autoregressive and that regional spillovers are relevant to explain the relationship between unemployment and wages in the Spanish provinces.
منابع مشابه
Wage Inequality in Developing Countries: An Examination of New Economic Geography Theory
The purpose of this study is to investigate the factors affecting the manufacturing industry wage among selected developing countries based on new economic geography theory. More specifically, we use a panel data model to study the spatial structure of wages in 136 countries for the period 1998-2007. The results indicate that this theory provides a good description of the spatial structure of w...
متن کاملThe wage curve revisited: estimates from a UK panel
Panel data from the United Kingdom are used to estimate a wage curve that allows simultaneously for time, individual, and spatial effects and which thus finesses the problem of grouped data bias. Once allowance is made for the multilevel and crossclassified nature of the data, estimates of the unemployment elasticity of the wage are seen to be volatile and imprecise. JEL Classification: J30
متن کاملIssn 1466-0814 the Uk Wage Curve: New Evidence from the British Household Panel Survey
This paper investigates the UK wage curve using longitudinal micro data drawn from the first eight waves of the British Household Panel Survey (BHPS). We estimate a fixed-effects model that controls for observed and unobserved individual-specific heterogeneity. Our results suggest that there is evidence of a negative relationship in wage-unemployment space. The estimated unemployment elasticity...
متن کاملThe Uk Wage Curve: New Evidence from the British Household Panel Survey
This paper assesses the existence of a UK ‘wage curve’ to explore the role of regional unemployment in the determination of individual pay. Recent empirical research adheres to the existence of a new empirical law of economics, a stable inverse non-linear relationship between individual pay and the local unemployment rate. Critiques of this research emphasise issues concerning choice of econome...
متن کاملA Dynamic Panel Macroeconometric Model for Labour Markets: Evidence Across Australian States
We construct a dynamic panel error correction model of the Australian labour market using macroeconomic data across seven states and 27 years. Using panel cointegration tests, and fully modified OLS estimates, we test 3 competing long run hypotheses: real wage-productivity relation; real wage-marginal disutility relation; and the wage curve hypothesis. We find evidence to prefer the first. The ...
متن کامل