Further Evidence on Disaggregated Wage Curves: The Case of Spain

Abstract

Individual data from the Spanish Family Budget Survey (EPF 1990-1991) are used to estimate disaggregated wage curves (industry sector, gender, age, schooling, and occupation). The results show a wage curve for all employees with an elasticity of -0.13. It is also concluded that less protected labour market groups - young workers, manual workers and building sector workers - have a higher elasticity of wages to local unemployment. These results indicate a greater facility of firms in these segments to set wages as a function of the unemployment rate and they are supportive of efficiency wage theoretical models.