Kelompok 10

Vina Pitria Gusmen 103218006

Gina kultsum 103218007
Abdullah 103218019
Rafi Rachmadi 103218034

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

Resume:

Spain is one of the countries used as tourist attractions, no wonder the country has become a
role model for other countries to emulate the management system of the tourism industry.
The hotel sector is one part of the Tourism Industry in Spain. The Hospitality sector that is
most interested in tourists is 6 regions namely, Andalusia, Canary Islands, Balearic, Madrid,
Catalonia and Valencia and the focus of this journal discusses campsites and other types of
lodging, restaurants, the six regions are the biggest contributors to income the spanish
country if seen based on the GVA data of the spain country which is as much as 73% of the
total revenue of the spain country. The six regions are divided into two categories, namely
areas with high labor productivity and the most competitive labor costs per unit. The Belearci
and Madrid islands are regions that have high labor productivity while the regions with the
most competitive labor costs per unit are Canaries, Catalonia and Madrid. The high
percentage of Spanish state revenue contributors in the six regions, making a lot of
researchers doing research in Spain. One of the research focuses of the researchers is to
examine whether there is discrimination in the wages of workers in the hospitality sector in
the six regions.
The study only focused on the hotel sector because they think the hotel sector in Spain shows
different things when compared to other sectors in the Spanish country on the influence of the
Spanish economy, the difference is seen from the return of education and experience in the
hotel sector which is still low. This is the focus of the researchers to see wage discrimination
in the six regions. they used the Oaxaca and Blinder decomposition methods in conducting
research, because according to them the method made it possible to examine differences in
the average wages of the six regions. Researchers use the oxaca theory to see the salary gap
given to women and men in the Spanish regions. This study has 2 objectives, first to see how
much the salary gap is due to gender differences, and because of differences in the return or
return of each gender. Second, to evaluate the impact on each worker due to differences in
salary given in each region, on productivity and returns.

The canary island sample is made an example by researchers as an area that does not enforce
salary discrimination due to gender. In the canary islands there is a wage gap because
naturally there are differences in the level of productivity of the individual himself. The
canary area specializes in the tourism sector with a relatively high number of working
populations in hotels, then the second component of region j wages which applies to salary
discrimination in terms of productivity or return.
The hotel sector is a sector with low wages compared to other private sectors, this is due to
the low average education of workers. This research wage level is used as the dependent
variable, while the independent variables used include the level of Education, experience,
length of work (tenure). The sample used was workers with a range of 16-65 years of age.
Generally, male workers have more experience than women, this is because in their time
women will have other obligations, especially after marriage. Then this study also uses a
dummy variable, for contract workers and permanent workers, and the data used comes from
the WSS survey, the survey contains data about the company's identity and the identity of its
employees. Conclusions from the results of research in the areas of catalonia, canary,
valensia, Andalusia can be said that the capacity of Human capital in regions of Spain have
differences both in terms of characteristics or in terms of gender.

Empirical results

In 2008, Thrane began estimating men and women whose focus was on the tourism sector
and in the hotel industry. Estimates for work experience and length of time working at the
company were lower when compared to the level of education. The results showed that prior
experience of men was not significant in 3 regions namely, Andalusia, catalonia, and the
Madrid community and women were significant in 2 regions, namely the Balearic Islands and
the Madrid commission. The experience in the hotel sector was higher than the industry
sector. And this makes capital tbm reduced. And it even has a negative effect on wages. In
addition, work skills are also rated low at only 0.6% for women in the Canary Islands and 2%
in the Valencia community. In the characteristics of their work, it turns out that men and
women alike have experienced an increase of around 17% for men in the Madrid community
and 5.86% in other regions. Whereas for women that is around 16.41% in the canary islands.
In this analysis shows that if the level of education is high, then the wages will also be high
(for men) compared to women. (because usually there are many women leave, such as
maternity leave, etc.). In an equation, the coefficient shows the existence of gender and
regional differences.

Decomposition of differences between regions based on gender, the regions analyzed are the
Canary Islands and the main tourist areas in Spain. Here, using the oxaca and blinder
methods, begin to look at wage differences in the two regions. If the result is positive, it
means that the variable can describe the difference in wages, whereas if the result is negative
it means that there is no difference in wages.

For men, it turns out that this component has a contribution of 220.16% in the Balearic
Islands and 82.94% in andalusia. Whereas for women the contribution was seen in the
Balearic Islands at 144.47% and in the catalonia region at 101.28%. According to the analysis
of Garcia and Molena in 2002, men assume that personal characteristics turn out to show
wage gaps in almost all regions, except in the Balcaric islands, this can be seen from the
workers in the barcalic islands whose employment can be up to double that of workers on the
islands canary. In the Canary Islands, it turns out they are hiring people with low levels of
education, maybe because the Canary Islands are a place famous for its beaches by people.
This further shows the wage gap of around 40.28% in Madrid and 293.92% in the Valencia
community. If women's education in the Canary Islands is higher, then this will also increase
the wage gap. Job characteristics always have a positive effect on the wage gap for both men
and women. If work stability in the Canary Islands is high, then the level of wage
differentials for men and women also increases. Uneven distribution of companies in
Indonesia, on average, does not show wage differences for women, but for men is very
visible. According to Hirsch el, an area with high labor density, wages will also be high. this
will make the company start to increase its competition which will result in an increase in
wages for workers.

Decomposition of intra-regional differences by gender.

In 2009, Munoz bullon mentioned that women who were in the tourism industry were able to
be protected by minimum wage laws. Because the law has a very strong impact on industries
that provide low wages. But when seen in general, a high level of education will be able to
reduce the level of the wage gap in almost all regions. This is seen from the fact that there is a
relative effect on wage differentials between men and women in the region. And the
relationship between low levels of education and wage gaps is positive.

When compared to the Wage gap journal in the labor market in Turkish in 2007, this issue
was indeed a concern in the world of work, using the same method, Oaxaca decompotion.
But by not using this method even the level of discrimination from workers in Turkey is very
high, the difference in salary is very pronounced. For example, female workers usually do not
pay at the family company level, using the schooling dummy regression experience, tenure,
dummy male and R2 from 6 different regions. the difference in men's and women's salaries is
true.

The conclusion

There is a clear difference between salary differences between men and women when viewed
from the similarities of the two journals with the use of almost the same model, the level of
salary has no effect on education and the position received by women will receive less salary
but there are variables not included in the journal this is like the effort given to the work that
is difficult to be thorough. Our conclusion is that if we work in a job that can be heavy work,
women will get a lower salary, but it is not certain that if in ordinary work women get a high
salary, not none, but rarely, then the discrimination treatment still exists.