Abstract
This paper presents a comparative analysis of the wage structures in the Spanish hospitality sector and other private service industries. Using data from the 2006 Spanish Wage Structure Survey (Encuesta de Estructura Salarial) [1], we estimate human capital returns in the hospitality industries. These results have been compared to those obtained in other private services. Education returns in these estimations are lower in the hospitality sector although there are significant differences between regions. Similar results were found for the other human capital variables used. Finally, the paper provides new empirical evidence on the regional wage gap in this sector. The main wage gap in the Canary Islands and the Madrid region is due to differences in returns in the observed variables, whereas in other regions most of the differences are due to the resources allocated.
Highlights
Tourism has been a determinant factor in the modernization of the Spanish economy
This paper presents a comparative analysis of the wage structures in the Spanish hospitality sector and other private service industries
The main wage gap in the Canary Islands and the Madrid region is due to differences in returns in the observed variables, whereas in other regions most of the differences are due to the resources allocated
Summary
Tourism has been a determinant factor in the modernization of the Spanish economy. many aspects of this sector, such as labor market characteristics and regional differences, have not been widely studied. Tourism is a cross-sectional industry in which highly diverse activities are grouped. Regional differences are highly significant and the more precarious employment conditions tend to disappear in the more consolidated tourist destinations [2]. In this context, we estimate human capital returns and quantify wage differences for tourism regions in Spain. We analyze whether wage differences at the regional level may be accounted for by differences in returns and observable characteristics. The two sections outline the database and present a descriptive analysis of the main variables (Section 3). A brief description of the evidence obtained is provided and the main conclusions are formulated
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