Descentralización de la Negociación Colectiva y Desempleo Regional: Evidencia para la Economía Gallega

This paper addresses the influence of the wage bargaining decentralization process undertook in the Spanish economy since 1986 on the Galician labour market and its ability to create employment. We estimate a wage setting equation for Galicia and for the rest of Spain, and conclude that this decentralization process has implied a fundamental change in the relationship between bargained wages and the general conditions of the labour market in the rest of Spain. This would limit employment creation in Galicia.