BLANCO VALERIA
Congresos y reuniones científicas
Título:
Wage convergence in Argentinean provinces
Lugar:
Córdoba - La Cumbre
Reunión:
Seminario; Arnoldshain Seminar XIV - Institutions, Trade, and Economic Policy; 2016
Resumen:
The paper analyses Argentinean regional labor markets for the period 1997-2013. Two key aspects of the labor market are studied: on the one hand, the convergence of wages, and on the other, the degree of wage flexibility (or wage differential) in provincial labor markets. Evidence on wage convergence among Argentinean provinces is found. Beta convergence analysis shows that in the case of Argentinean provinces there is a process of convergence in real wages at an annual rate of 3% that leads the provinces to cover half the distance to each own steady state in twenty years. Wages do not seem to be flexible, depending mainly on the evolution of the average national wage while having small response to changes in local productivity or unemployment. This indicates that wages respond rather to institutional factors -wage union agreements that are usually national, which in turn overrepresents what happens in the central labor markets- than to factors from each of the provinces? labor markets. This could be interpreted as a sign of the existence of a unique large market, influenced by the weight of unions and centralized negotiations.