Returns on Education in the Spanish Tourism Labour Market

Abstract

This paper studies the returns on education for workers in the Spanish tourism sector through wage equations and analysis of the extent to which education results in higher returns. The authors employ an extended Mincer model in which additional variables influencing wage rates, apart from education and experience, are included. The combined effects of experience and education on workers' incomes throughout their working lives are also analysed. The results indicate that, among other things, (a) the Spanish tourism sector values its employees' levels of education somewhat less than other service sectors; (b) the size of the firm plays an important role in wage determinants; and (c) the pattern of lifelong earnings is different for workers with higher and lower levels of education.