Explaining the fall of the skill wage premium in Spain

1. Felgueroso Fernández, Florentino
2. Hidalgo-Pérez, Manuel
3. Jiménez Martín, Sergi

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More publications in: Documentos de trabajo ( FEDEA )

Abstract

The main purpose of this work is to document the driven forces of the fall in the wage skill premium (WSP) in Spain in the last two decades. We show that the increase of occupational mismatch helps to explain the downward trend in university returns since the mid-80s. In the second part of the 90s and during the last decade, the decrease of labor market experience and firm tenure among well-matched workers, due to the extensive use of temporary contracts, also contributes to explain the fall of the WSP.

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