Regional structure of wages and external economies in Spain

Regional data on wages for the Spanish economy show that workers who live in developed regions earn more than workers in other regions. Literature on external economies provides a possible explanation of why firms do not move from these regions to others where wages are lower. Previous studies for the Spanish case use aggregated sectoral data to explain in terms of external economies why average wages are different across regions. The original contribution of this paper consists of using individual data to detect the existence and nature of external economies as an explanatory cause of territorial wage differences. With this aim, we have used individual data from the EPF 1990-91 (INE). This information permits us to control the influence of individual and job characteristics on wages to, first, detect the existence of external economies and, second, to test alternative explanations of their presence. The empirical evidence obtained confirms the relevance of territorial external economies and their influence on wages, as a result of improvements in the productive efficiency of the firm. In concrete terms, the more relevant external economies are associated with the regional human capital stock and geographical productive specialisation- Los datos sobre salarios provinciales muestran la existencia de diferencias salariales geográficas de considerable magnitud. Algunos estudios disponibles para el caso español tratan de explicar dichas diferencias en términos de economías externas utilizando para ello datos sobre salarios medios sectoriales. La principal aportación de este trabajo reside en el empleo de datos individuales para detectar la existencia y averiguar la naturaleza de las economías externas que afectan a los salarios de un territorio. Los datos individuales utilizados proceden de la EPF 1990/91. La información estadística disponible ha permitido controlar la influencia de las características individuales y del puesto de trabajo sobre el salario con el objetivo de, primero, detectar la existencia de economías externas y, después, conocer el origen y naturaleza de las mismas. La evidencia empírica obtenida confirma la relevancia de las economías externas territoriales y su influencia positiva sobre los salarios, como resultado de las mejoras aportadas a la eficiencia productiva de las empresas localizadas en dicho territorio. En concreto, las economías externas más importantes son las generadas por el stock de capital humano provincial y por la especialización del territorio

Overeducation and local labour markets in Spain

One aspect that has not been widely considered by the literature on the topic is differential overeducation, the existence of differences among men and women in terms of overeducation as a result of the geographical restrictions of married woman when searching for job. In this context, Büchel y Van Ham (2002) have highlighted the relevance of spatial mobility in regional labour markets (basically commuting) as an explanatory factor of women differential overeducation, but also of global overeducation.The objective is this paper is to test the influence of individual variables and some characteristics of regional labour markets related with spatial mobility on overducation in the Spanish Economy. With this aim, we use microdata from the Encuesta de Presupuesto Familiares 1990-91 (Budget Family Survey). The results permits us to conclude that the size of local labour markets and the possibility of increasing the job search to other labour markets through commuting are relevant factors to explain overducation in the Spanish labour market.

Design of homogenous territorial units: a methodological proposal

One of the main questions to solve when analysing geographically added information consists of the design of territorial units adjusted to the objectives of the study. In fact, in those cases where territorial information is aggregated, ad-hoc criteria are usually applied as there are not regionalization methods flexible enough. Moreover, and without taking into account the aggregation method applied, there is an implicit risk that is known in the literature as Modifiable Areal Unit Problem (MAUP) (Openshaw, 1984). This problem is related with the high sensitivity of statistical and econometric results to different aggregations of geographical data, which can negatively affect the robustness of the analysis. In this paper, an optimization model is proposed with the aim of identifying homogenous territorial units related with the analyzed phenomena. This model seeks to reduce some disadvantages found in previous works about automated regionalisation tools. In particular, the model not only considers the characteristics of each element to group but also, the relationships among them, trying to avoid the MAUP. An algoritm, known as RASS (Regionalization Algorithm with Selective Search) it also proposed in order to obtain faster results from the model. The obtained results permit to affirm that the proposed methodology is able to identify a great variety of territorial configurations, taking into account the contiguity constraint among the different elements to be grouped.

Spanish unemployment: normative versus analytical regionalisation procedures

In applied regional analysis, statistical information is usually published at different territorial levels with the aim of providing information of interest for different potential users. When using this information, there are two different choices: first, to use normative regions (towns, provinces, etc.), or, second, to design analytical regions directly related with the analysed phenomena. In this paper, provincial time series of unemployment rates in Spain are used in order to compare the results obtained by applying two analytical regionalisation models (a two stages procedure based on cluster analysis and a procedure based on mathematical programming) with the normative regions available at two different scales: NUTS II and NUTS I. The results have shown that more homogeneous regions were designed when applying both analytical regionalisation tools. Two other obtained interesting results are related with the fact that analytical regions were also more stable along time and with the effects of scale in the regionalisation process. Keywords: Unemployment, normative region, analytical region, regionalisation. JEL Codes: E24, R23, C61.

Fiscal sustainability across government tiers: an assessment of soft budget constraints.

This paper analyses how fiscal adjustment comes about when both central and sub-national governments are involved in consolidation. We test sustainability of public debt with a fiscal rule for both the federal and regional government. Results for the German Länder show that lower tier governments bear a relatively smaller part of the burden of adjustment, if they consolidate at all. Most of the fiscal adjustment occurs via central government debt. In contrast, both the US federal and state levels contribute to consolidation of public finances.fiscal policy, fiscal rules, EMU, SGP, fiscal federalism

Testing the FTPL across government tiers.

Control on regional government budgets is important in a monetary union as lower tiers of government have fewer incentives to consolidate debt. According to the Fiscal Theory of the Price Level; unsustainable non-Ricardian fiscal policies eventually force monetary policy to adjust. Hence, uncoordinated and non-regulated regional fiscal policies would therefore threaten price stability for the monetary union as a whole. However, the union central bank is not without defense. A federal government that internalises the spillover effect of non-Ricardian fiscal policies on the price level can offset non-Ricardian regional fiscal policies. A federal government, which taxes and transfers resources between regions, may compensate for unsustainable regional fiscal policies so as to keep fiscal policy Ricardian on aggregate. Following Canzoneri et al. (2001), we test the validity of the Fiscal Theory of the Price Level for both federal and regional governments in Germany. We find evidence of a spillover effect of unsustainable policies on the price level for other Länder. However, the German federal government offsets this effect on the price level by running Ricardian policies. These results have implications for the regulation of fiscal policies in the EMU.Sustainability, fiscal policy, FTPL, fiscal federalism.

Fiscal Sustainability Across Government Tiers

This paper analyses how fiscal adjustment comes about when both central and sub-national governments are involved in consolidation. We test sustainability of public debt with a fiscal rule for both the federal and regional government. Results for the German Länder show that lower tier governments bear a relatively smaller part of the burden of debt consolidation, if they consolidate at all. Most of the fiscal adjustment occurs via central government debt. In contrast, both the US federal and state levels contribute to consolidation of public finances.Fiscal policy, fiscal rules, EMU, SGP, fiscal federalism.

Educational mismatches in the EU: immigrants vs native

The purpose of this paper is to analyse and explain the factors contributing to the observed differences in skill mismatches (vertical and horizontal) between natives and immigrants in EU countries. Using microdata from the 2007 wave of the Adult Education Survey (AES), different probit models are specified and estimated to analyse differences in the probability of each type of skill mismatch between natives and immigrants. Yun's decomposition method is used to identify the relative contribution of characteristics and returns to explain the differences between the two groups. Findings: Immigrants are more likely to be skill mismatched than natives. The difference is much larger for vertical mismatch, wherein the difference is higher for immigrants coming from non-EU countries than for those coming from other EU countries. We find that immigrants from non-EU countries are less valued in EU labour markets than natives with similar characteristics -a result that is not observed for immigrants from EU countries. These results could be related to the limited transferability of human capital acquired in non-EU countries. Social implications: The findings suggest that specific programs to adapt immigrants' human capital acquired in the home country are required to reduce differences in the incidence of skill mismatch and better integration into EU labour markets. Originality: This research is original, because it distinguishes between horizontal and vertical mismatch -an issue that has not been considered in the literature on differences between native and immigrant workers- and due to the wide geographical scope of our analysis, which considers EU and non EU-countries

Ciutadans socialment responsables i no socialment dependents

L'Estratègia Europa 2020, aprovada el juny de 2010, presenta tres prioritats que es reforcen mútuament: creixement intel·ligent, sostenible i inclusiu, capaç d'aconseguir alts nivells d'ocupació, productivitat i cohesió social. En aquest context, la necessitat de donar resposta a l'increment de les desigualtats que s'ha produït durant la crisi econòmica ha portat a reformar alguns aspectes de l'Estat del Benestar que han accentuat encara més les diferències ja existents entre els diferents estats membres de la Unió Europea. A aquest article s'analitza, en primer lloc, l'evolució recent de diferents indicadors relacionats amb la protecció social des d'una perspectiva crítica i, a continuació, les iniciatives més recents en l'àmbit català i espanyol per tal de promoure el que es coneix com a 'inclusió activa'. De fet, en l'àmbit de la Unió Europea, les polítiques contra la pobresa han patit profunds canvis en les dues últimes dècades reorientant-se cap a una combinació d'instruments orientats a garantir un mínim d'ingressos als ciutadans i d'altres que tracten de promoure la seva inserció socioeconòmica. En segon lloc, es descriu en major detall la situació al nostre país que, de fet, constitueix una anomalia dins el context de la Unió Europea, sent un dels pocs països que no compten amb un instrument general de protecció econòmica de les llars amb menys recursos. Per últim, es valoren diferents alternatives de reforma en aquest àmbit tenint en compte els reptes a que ens haurem d'enfrontar en un futur proper

Advances in Spatial Econometrics. Methodology, Tools and Applications. Luc Anselin, Raymond J.G.M. Florax y Sergio J. Rey (eds.) [Ressenya de llibre]

Ressenya de : Advances in Spatial Econometrics. Methodology, Tools and Applications por Luc Anselin, Raymond J.G.M. Florax y Sergio J. Rey (eds.), Springer, Berlin Heidelberg (Germany), 513 páginas, 2004, ISBN: 3-540-43729-