Stratification and Inequality in Labor Incomes in Spain, 1980-2014; an Analysis by Sectors, Skills, and Gender

Intra-country inequality is generally higher now than it was in the 1980s, especially within developed countries. This higher inequality, whether it manifests in income or in the sphere of consumption, is strongly related to social stratification. To analyze these increases in inequality and the resulting social stratification in Spain for the period 1980-2014 (further divided into three sub-periods), we use an input-output framework. This will allow us to apply a Structural Decomposition Analysis (SDA) to annual changes in value added, decomposed into several effects (wages, labor, and consumption), which can be linked to traditional measures of inequality (Gini indexes). First, we find that the labor share of income fell from 1980. Second, the sectoral structure of the labor market is a determinant factor of labor incomes stratification. Third, inequality by gender now is less accentuated than in 1980. Finally, domestic consumption by income quintiles has lost weight in value-added generation.