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A territorial analysis of wage convergence/differentials in Spain

  • Economics


The purpose of this paper is to analyze territorial convergence in Spain from the perspective of real wages for the period 1995-2001. To do that, we employed classical, non-parametric and spatial techniques. The main conclusions that we draw are as follows : a) there is a process of wage convergence between the Spanish provinces ; b) the intra-distributional mobility is, however, low ; c) some spatial effects are observed in the provincial distribution of wages, and when these are taken into account the rate of convergence rises ; d) the main factor lying behind provincial wage differentials are disparities in provincial labour productivity, with provincial unemployment rates playing no role whatsoever.

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