This paper estimates education demand for Spain in order to analyze whether variations of the education wage premium between the 1980s and 1990s can be explained within the framework of a supply and demand model. The evidence reveals a stable pattern of growth in the demand for education throughout the eighties and nineties, empirically showing that differences in the evolution of the education wage premium during the two decades can be explained by varying growth in education supply coupled with stable growth in education demand.

Key words: education wage premium, demand for education, labor supply.
JEL Classification: J24, J31, O33.