How Do the Skilled and the Unskilled Respond to Regional Shocks? the Case of Spain

Paolo Mauro and Antonio Spilimbergo

No 1998/077, IMF Working Papers from International Monetary Fund

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 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.

Keywords: WP; wage; real wage; regional unemployment; skill level; Spain; wage pressure; wage agreement; sectoral wage increase; unemployment difference; set wage; adult wage; decentralization of the wage; unemployment imbalance; wages in high-unemployment; Unemployment rate; Unemployment; Labor markets; Wages; Labor costs; Europe (search for similar items in EconPapers)
Pages: 29
Date: 1998-05-01
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Citations: View citations in EconPapers (15)

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Journal Article: How Do the Skilled and the Unskilled Respond to Regional Shocks?: The Case of Spain (1999)
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