The regional wage gap in the Spanish hospitality sector based on a gender perspective

In this work we estimate human capital returns in the Spanish hospitality sector using an expanded version of the Mincer wage equation (1974). In addition, wage differences in the main tourist regions are quantified using the wage decomposition of Oaxaca (1973) and Blinder (1973) from a gender perspective. Using data from the 2006 Spanish Wage Structure Survey (Encuesta de Estructura Salarial), all the regions under analysis show lower education returns in the hospitality sector when compared to other private services. The same results are found for the other human capital variables used. There are significant differences in education returns between regions, especially in Catalonia and the Canary Islands. The main wage gap in the Canary Islands and the Madrid region is due to differences in returns in the observed variables, whereas in other regions most of the differences are due to the resources allocated. Furthermore, gender wage differences are found in all the regions. The largest estimated wage gap between men and women occurs in the Balearic Islands followed by Catalonia and the Community of Valencia. In contrast, equality between genders is greater in the Community of Madrid.

• We analyze regional wage differences in the main tourist regions in Spain from a gender perspective.
• Human capital returns are lower in the hospitality sector when compared to other private services.
• Wage gap decomposition shows that, overall, wage discrimination is significant in all Spanish regions.
• Gender wage differences are found in all regions, although the Comunity of Madrid presents more equality between genders.