Modelling the Spanish Wage Structure Through Structural Equations: A Gender Perspective

Elena Victoria Lasso-Dela-Vega (), José Mondéjar-Jiménez () and Alejandro García-Pozo ()
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Elena Victoria Lasso-Dela-Vega: University of Málaga
José Mondéjar-Jiménez: University of Castilla-La Mancha
Alejandro García-Pozo: University of Málaga

Journal of the Knowledge Economy, 2025, vol. 16, issue 4, No 46, 15120-15139

Abstract: Abstract Employment conditions, wages and the way they are determined are issues that continue to be of interest in the economic literature. However, previous authors have focused more on analysing the wage returns of specific factors rather than studying the causal relationship, the strength and the direct and indirect effects that these determinants have on wages. Therefore, this paper aims to provide a new methodological approach by applying a PLS-SEM model (partial least squares in structural equations models) to the study of wage formation. Furthermore, in this paper, the model analysed is replicated from a gender perspective as a new methodological approach to the study of gender wage differentials. The 2018 Spanish Wage Structure Survey is used, and we observed the existence of an indirect effect of Human Capital on Wages, in the general model and in the sub models by gender, which suggests that its total effect could be greater than the one analysed in the literature. Likewise, this paper indicates that market situation, occupational mobility and workers’ educational levels may have a strong impact on the wage differentials between men and women.

Keywords: Wage; Gender; Human capital; Labour conditions; Market; SEM; J16 Economics of Gender, Non-labour Discrimination; J24 Human Capital, Skills, Occupational Choice, Labour Productivity; J31 Wage Level and Structure, Wage Differentials (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02340-x

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