In this paper we provide a first analysis on the role of wage flexibility at a regional level for the Spanish case. To this end, we compute regional inequality indices for industry wages and productivity, which is complemented with an econometric estimation of an equation for regional and industry wages. Our results point to a high degree of rigidity of regional wages, which show a considerably lower variability than productivity levels, so that the process of wage setting would have been driven mainly by between-industries and across-regions homogeneity considerations in union behaviour.
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