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This article examines wage differences across Spain's NUTS‐2 regions along the entire wage distribution based on matched employer‐employee microdata from 2006 to 2014. Unlike previous related studies, we properly control for differences in regional purchasing power parities, which are very large in practice. Although part of the raw regional wage differences observed is explained by differences between regions in productive structures, and, to a much lesser extent, in labor forces, noteworthy, very similar throughout the wage distribution regional differences net of composition effects arise even after controlling for a broad set of individual and firm characteristics. [ABSTRACT FROM AUTHOR]

Using international harmonized matched employer–employee micro data from the European Structure of Earnings Survey for nine European countries, this article examines the origin of international differences in wage inequality. Wage inequality is highly correlated with the magnitude of inter-firm wage differentials. Workplace- and job-related factors generally have a more significant impact on within-country wage inequality than individual characteristics. European countries differ significantly not only in the extent of wage inequality but also in the relative influence of factors shaping wage inequality. Although cross-country differences in labour force composition play a part in the explanation, differences in the distribution and in labour market prices attached to workplace and job characteristics are the primary factors contributing to international differences in wage inequality. [ABSTRACT FROM AUTHOR]