Utilization of Mixed Distributions in the Calculation of Polarization: The Case of Spain
- 64 Downloads
This study analyzes the evolution of salary polarization in the Spanish labor market. The paper proposes the use of mixed distributions to examine the consequences of the economic crisis in one of the European markets in which the unemployment rate has had greatest impact. Applying this type of distribution aims to establish the contribution of a fixed group (the unemployed population, in this particular case) to overall polarization. How unemployment benefits impact on polarization has also been analyzed. Generally speaking, the tendency of the polarization indexes calculated changes around the beginning of the crisis, with decreasing numbers during the economic growth period and the opposite behaviour in the crisis period. In addition, when mixed distributions are used, the results show that the unemployed group has played an important role in the increase of social tension from 2008 onwards. Finally, the evidence obtained shows that unemployment subsidies do not always reduce salary tensions between group populations and, in some cases, increase polarization.
KeywordsMixed distributions Polarization Salaries Unemployment
JEL ClassificationD31 D63 J60
Professor Karina Alfaro acknowledges financial support from the Madrid regional government (Project S2015/HUM-3416-DEPOPOR-CM).
- Aitchison, J. (1955). On the distribution of a positive random variable having a discrete probability mass at the origin. Journal of the American Statistical Association, 50(271), 901–908.Google Scholar
- Bentolila, S., Dolado, J., & Jimeno, J. (2012). Reforming an insider-outsider labor market: The Spanish experience. IZA Journal of European Labor Studies, 1(4), 1–29.Google Scholar
- Bentolila, S., & Jimeno, J. (2006). Spanish unemployment: The end of the wild ride? In M. Werding (Ed.), Structural unemployment in Western Europe. Reasons and remedies (pp. 317–343). Cambridge, MA: MIT Press.Google Scholar
- Blackburn, M., & Bloom, D. (1986). Family income inequality in the United States, 1967–1984. In Proceedings of the 39th annual meeting, industrial relations research association (pp. 349–358).Google Scholar
- Brandolini, A., Alfonso, R., & Torrini, R. (2011). The distribution of employees’ labour earnings in the European Union: Data, concepts and first results. Working paper 2011-198, ECINEQ.Google Scholar
- Centro de Investigaciones Sociológicas (CIS). (2007). Barometer of December. Retrieved from http://www.cis.es/cis/export/sites/default/-Archivos/Marginales/2740_2759/2746/e274600.html. Accessed 30 March 2018.
- Centro de Investigaciones Sociológicas (CIS). (2008). Barometer of December. Retrieved from http://www.cis.es/cis/export/sites/default/-Archivos/Marginales/2780_2799/2781/e278100.html. Accessed 30 March 2018.
- Centro de Investigaciones Sociológicas (CIS). (2011). Barometer of December. Retrieved from http://datos.cis.es/pdf/Es2923mar_A.pdf. Accessed 30 March 2018.
- De la Rica, S., & Anghel B. (2014). Los parados de larga duración en España en la crisis actual. Fundación Alternativas. Working paper no. 185/2014.Google Scholar
- European Cities Hit by Anti-austerity Protests. (2010, September 29). BBC. Retrieved from http://www.bbc.com/news/world-europe-11432579. Accessed 12 March 2018.
- Farré, L., Fasani, F., & Mueller, H. (2015). Feeling useless: The effect of unemployment on mental health in the Great Recession, Barcelona GSE. Working paper series no. 838.Google Scholar
- García-Pérez, J., & Vall, J. (2015). Youth unemployment in Spain: More issues than just high unemployment. In J. Dolado (Ed.), No country for young people? Youth labour market problems in Europe (pp. 117–128). London: CEPR Press.Google Scholar
- Horrigan, M., & Haugen, S. (1988). The declining middle-class thesis: A sensitivity analysis. Monthly Labor Review, 111(5), 3–13.Google Scholar
- Izquierdo, M., Puente, S., & Font, P. (2013). Evolución del desajuste educativo entre la oferta y la demanda de trabajo en España (pp. 39–47). Banco de España: Boletín Económico.Google Scholar
- Jansen, M., Jiménez-Martín, S., & Gorjón, J. (2016). The legacy of the crisis: The Spanish labour market in the aftermath of the Great Recession. Fedea, Estudios sobre la Economía Española 2016/10.Google Scholar
- Jaumotte, F. (2011). The Spanish labor market in a cross-country perspective. Working paper 11/11. International Monetary Fund.Google Scholar
- Levy, F., & Murnane, R. (1992). U.S. earnings levels and earnings inequality: A review of recent trends and proposed explanations. Journal of Economic Literature, 30(3), 1333–1381.Google Scholar
- Lorenzo Gilsanz, F. (2014) (Coord.). VII Informe sobre exclusión y desarrollo social en España 2014. Retrieved from http://www.foessa2014.es/informe/uploaded/descargas/VII_INFORME.pdf. Accessed 25 June 2018.
- Minder, R. (2012, May 13). Tens of thousands protest austerity in 80 Spanish Cities. New York Times. Retrieved from http://www.nytimes.com/2012/05/14/world/europe/tens-of-thousands-protest-austerity-in-spain.html. Accessed 12 March 2018.
- Morenatti, E. (2011, May 20). Demonstrations in Spain protest political parties and economic crisis. The Washington Post. Retrieved from https://www.washingtonpost.com/world/demonstrations-in-spanish-protest-political-parties-crisis-handling/2011/05/19/AFIYS86G_gallery.html?utm_term=.3c044657b644. Accessed 12 March 2018.
- Munteanu, B. (2016). Youth unemployment in EU: A pressure to avoid long term social empoverishment. Europolity: Continuity and Change in European Governance, 10(2), 1–35.Google Scholar
- OECD. (2017). OECD economic surveys: Spain 2017. Paris: OECD Publishing.Google Scholar
- Popovici, I., & French, M. (2013). Does unemployment lead to greater alcohol consumption? Industrial Relations, 52(2), 444–466.Google Scholar
- Samuel, H. (2009, May 01). Riots across Europe fuelled by economic crisis. The Telegraph. Retrieved from https://www.telegraph.co.uk/news/worldnews/europe/5258634/Riots-across-Europe-fuelled-by-economic-crisis.html. Accessed 12 April 2018.
- Seligman, M. (1975). Helplessness: On depression, development and death. San Francisco: W. H. Freeman.Google Scholar
- Sen, A. K. (1997). Inequality, unemployment and contemporary Europe. International Labour Review, 136(2), 155–171.Google Scholar
- Spanish Statistical Office. (2017). Unemployment rate (Database). Retrieved from http://www.ine.es/jaxiT3/Tabla.htm?t=4086&L=0. Accessed 13 June 2017.
- Warr, P. (1987). Work, unemployment, and mental health. Oxford: Clarendon Press.Google Scholar
- Wolfson, M. (1994). When inequalities diverge. American Economic Review, 84, 353–358.Google Scholar