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Staff Papers Logo    March 1999
Volume 46, Number 1
How Do the Skilled and the Unskilled Respond to Regional Shocks?: The Case of Spain
By Paolo Mauro and Antonio Spilimbergo

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Abstract: 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 highly skilled migrate very promptly in response to a decline in regional labor demand, while low-skilled workers drop out of the labor force or stay unemployed. [JEL E24, J61]

1999 International Monetary Fund