Regional disparities in the unemployment rate: the role of the wage-setting mechanism in Spain, 1987-1992
- Bande, R. 11
- Fernández, M. 11
- Montuenga, V. 2
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1
Universidade de Santiago de Compostela
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2
Universidad de La Rioja
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ISSN: 0034-3404
Datum der Publikation: 2007
Ausgabe: 41
Nummer: 2
Seiten: 235-251
Art: Artikel
Andere Publikationen in: Regional Studies
Zusammenfassung
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.