Wage distribution in Spain, 1994-1999an application of a flexible estimator of conditional distributions

1. Mora López, Juan
2. Febrer, Antonia

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Abstract

To investigate the trends in wages in Spain in 1994-1999, we propose a flexible estimator of conditional distributions. The estimator, based on a piecewise-linear specification of the conditional hazard function, allows us to capture almost any underlying relationship and is unaffected by the curse of dimensionality. Our results reveal that the main changes in the labor market involved graduate workers entering the labor market: the ¿overeducation¿ phenomenon intensified in Spain between 1994 and 1999, provoking a decrease in returns to schooling at higher levels of education.

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