Study co-authored by UB School of Economics researcher finds sizeable gender wage gap across Spanish regions

A recent research study co-authored by Ines P. Murillo Huertas (University of Extremadura), Raul Ramos (University of Barcelona) and Hipolito Simon (University of Alicante) has proven the existence of a sizeable gender wage gap across the Spanish regions. The article published in the scientific journal Social Indicators Research suggests that these variations cannot be fully explained by differences in the extent of discriminatory practices among Spanish regions and that a substantial part still remain unexplained because it cannot be analysed through econometric decomposition techniques.

In particular, the study –titled Regional Differences in the Gender Wage Gap in Spain– suggests that wage-setting institutions and certain economic and demographic factors affecting women life-cycle prospects to work are likely to be accountable for a part of the variation of the gender wage gap by region. As a result, the authors hold that initiatives affecting these demographic and macroeconomic factors need to be implemented in addition to policy measures aiming at closing the productive characteristics of men and women in order to reduce the existing gender wage gap.

“As several economic and demographic factors have been identified as potential causes of gap, policy measures to eliminate –or at least, reduce– the gender wage gap should also be diverse not only involving legal mechanisms (i.e. minimum wages or enforcing transparency) but also improving work-life balance through higher flexibility and assisting women careers through training or establishing gender quotas on promotion and recruitment”, Dr. Ramos explained.

The article has also found that variations in the size of the gap are roughly in the same range in Spain than in the European context, which suggests that it could be a highly representative case in the European context. The minimum size has been observed in Extremadura in 2002 and 2006, while the maximum gap has been found in Asturias in 2010. The researchers also highlight that the unexplained component is lower in the southern part of Spain than the north, especially in Navarra, Aragon and Catalonia, together with Madrid.

“Our research shows that within country variation in the gap is roughly in the same range than international variations observed in the size of the gap in the European context, pointing to the limited role of labour market institutions to explain cross-country differences in the gender wage gap”, Dr. Ramos explained.

The authors explain that several elements identified in previous international comparisons are also relevant in the explanation of regional differences in Spain, a country that constitutes an interesting case of study as there are big differences in growth and productivity levels but also in the functioning of regional labour markets. Among other conclusions, the article points out that the higher the minimum wage and the age gap at the first marriage; the lower the union density, the employment rate and the fertility rate, the lower the gender wage gap.

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