PUBLIC SECTOR WAGE GAPS IN SPANISH REGIONS

Abstract

Using data from the European Community Household Panel for the period 1995–2001, in this paper we show that there are sizeable public sector wage differences among regions that are mostly due to differences in returns, and to a lesser extent to differences in characteristics and to selection effects. Regional differences in public sector wage gaps vary across gender, educational levels and occupations. Also, they display a positive correlation with regional unemployment and a negative one with regional labour productivity.