How Do the Skilled and the Unskilled Respond to Regional Shocks? the Case of Spain
May 1, 1998
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Summary
Are there any differences in how workers of different skill levels respond to regional shocks? This paper addresses that question using the methodology of Blanchard and Katz (1992) and a unique data set on working-age population, labor force, and employment for five educational groups (ranging from the illiterate to the college-educated) over 1964-92 for the 50 Spanish provinces. The paper finds that the high-skilled migrate very promptly in response to a decline in regional labor demand, while the low-skilled drop out of the labor force or stay unemployed.
Subject: Labor, Labor costs, Labor markets, Unemployment, Unemployment rate, Wages
Keywords: adult wage, decentralization of the wage, Europe, Labor costs, Labor markets, real wage, regional unemployment, sectoral wage increase, set wage, skill level, Spain, Unemployment, unemployment difference, unemployment imbalance, Unemployment rate, wage, wage agreement, wage pressure, Wages, wages in high-unemployment, WP
Pages:
29
Volume:
1998
DOI:
Issue:
077
Series:
Working Paper No. 1998/077
Stock No:
WPIEA0771998
ISBN:
9781451956764
ISSN:
1018-5941
Notes
Also published in Staff Papers, Vol. 46, No. 1, March 1999.
