Wage inequality in Spain: a regional perspective

Abstract

This study examines wage inequality in the Spanish labour market from a regional perspective, drawing on stochastic dominance techniques. The main findings are, firstly, that wage inequality exhibits a significant regional heterogeneity and, secondly, that the reduction of wage inequality in the Spanish labour market in recent years is a general phenomenon. It is also observed that regional differences in workforce heterogeneity and the mix of jobs and workplaces and their returns are influential factors in the explanation of regional heterogeneity in the levels of wage inequality.