Revisiting the public-private wage gap in Spain: New evidence and interpretation

Couceiro de León, Alba and Juan Dolado

No 18136, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper updates the available evidence on the public-private wage gap in Spain, which dates back to 2012. Through microdata drawn from the last three waves of the Wage Structure Survey (2010, 2014 and 2018) we study how this gap and its distribution by gender and education have evolved during and after the Great Recession. Conventional Oaxaca-Blinder decompositions are used to divide the raw wage gap into a component explained by differences in characteristics and another one capturing differences in returns and endogenous selection. The main findings are: (i) a strong wage compression by skills, and (ii) a wage premium for less-skilled women in the public sector. Both empirical results can be rationalised by a monopoly-union wage setting model with monopsonistic features and the presence of female statistical discrimination

Keywords: Public sector; Private sector; Monopsony; Unions (search for similar items in EconPapers)
JEL-codes: J31 J38 J42 J45 (search for similar items in EconPapers)
Date: 2023-05
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Journal Article: Revisiting the public–private wage gap in Spain: new evidence and interpretation (2023)
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