More documents from Sala, Hector
More documents from Applied Economics

Export to your Reference Manger

Please Copy & Paste



Bookmark and Share

Institutions, capital stock and wage setting in Spain

[journal article]

Sala, Hector

fulltextDownloadDownload full text

(346 KByte)

Citation Suggestion

Please use the following Persistent Identifier (PID) to cite this document:

Further Details
Abstract This paper confronts two distinct perspectives of the labour market: the institutionalist view -highlighting equilibrium and labour market institutions- and the Chain Reaction Theory -emphasising dynamics and the growth drivers' role in labour market performance-. We consider the ratio of public to private capital stock as a growth driver relevant to the labour market; provide different economic rationales for this ratio to exert a negative influence in wage setting; and explore its empirical relevance in the context of a wage setting curve for Spain comprising the standard variables. There are two main results. First, several institutional variables taken to be critical to explain unemployment in the mainstream literature are not relevant for the Spanish wage setting curve. Second, there is a negative and significant influence of the ratio of public to private capital stock, which is robust to different specifications of the wage setting equation.
Publication Year 2009
Page/Pages p. 779-789
Journal Applied Economics, 41 (2009) 6
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)