Regions with rigid wages face higher unemployment rates, urgent reforms needed
The article examines how wages in different regions of Spain change based on factors like personal characteristics and regional unemployment rates. By analyzing data from 1995, 2002, and 2006, the researchers found that regions with higher unemployment have less flexibility in wages. This lack of flexibility can make it harder for local job markets to recover from economic downturns. To improve this situation, reforms in collective bargaining should aim to increase wage flexibility, especially in regions with high unemployment rates.