Touristic specialization and returns on human capital in the hospitality sector of the Spanish regions

The aim of our study is to evaluate the existence and degree of specialization in tourism of the Spanish regions from the perspective of the human capital stock and the returns of their education, limiting the scope of study to the hospitality subsector. We use an expanded version of the Mincer wage equation (1974) and data from the 2006 Spanish Wage Structure Survey. All the regions under analysis show lower education returns (and other human capital variables) in the hospitality sector when compared to other private services. There are significant differences in education returns between regions, especially in Catalonia and the Canary Islands.