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The Puzzling Fall of the Wage Skill Premium in S pain
Author(s) -
Felgueroso Florentino,
HidalgoPérez Manuel,
JiménezMartín Sergi
Publication year - 2016
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/manc.12116
Subject(s) - economics , falling (accident) , wage , labour economics , phenomenon , work (physics) , contrast (vision) , low wage , demographic economics , psychology , engineering , physics , psychiatry , optics , mechanical engineering , quantum mechanics
In contrast to most EU countries and other developed economies, the wage skill premium has been steadily falling between 1988–2008 in S pain. Using S panish S ocial S ecurity data we extend D ustman and Meghir work and find that the fall in the wage skill premium can be explained in part by an increase in the share of college graduates that are mismatched. However, this phenomenon only partially explains the fall in the WSP : differences between high and low‐educated workers in the returns to general experience and firm tenure have been substantially reduced since the end of the 90s.