Regional disparities in the unemployment rate: the role of the wage-setting mechanism in Spain, 1987-1992

  1. Bande, R. 11
  2. Fernández, M. 11
  3. Montuenga, V. 2
  1. 1 Universidade de Santiago de Compostela
    info

    Universidade de Santiago de Compostela

    Santiago de Compostela, España

    ROR https://ror.org/030eybx10

  2. 2 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

Revista:
Regional Studies

ISSN: 0034-3404

Ano de publicación: 2007

Volume: 41

Número: 2

Páxinas: 235-251

Tipo: Artigo

DOI: 10.1080/00343400601099680 SCOPUS: 2-s2.0-33947426759 WoS: WOS:000245037400007 GOOGLE SCHOLAR

Outras publicacións en: Regional Studies

Obxectivos de Desenvolvemento Sustentable

Resumo

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.