Regional Earnings Inequality in Great Britain: Evidence from Fixed-Effects Regressions

25 Pages Posted: 18 Nov 2007

See all articles by Heather Dickey

Heather Dickey

University of Aberdeen - Business School; Queen's University Belfast - Queen's Management School

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Abstract

Earnings inequality in Great Britain has increased substantially over the last two decades at both the national and regional levels. This paper examines the determinants of regional hourly earnings over the period 1976-95 by estimating regional fixed-effects earnings equations. Using panel data from the New Earnings Survey, individual-specific heterogeneity is controlled for, and superior estimates of the factors affecting regional earnings are obtained. Increasing returns to skill, increasing industrial differentials, and increasing premiums for older workers are found to have contributed to increasing regional earnings inequality, and consequently rising earnings inequality at the national level.

Suggested Citation

Dickey, Heather, Regional Earnings Inequality in Great Britain: Evidence from Fixed-Effects Regressions. LABOUR, Vol. 21, Issue 4-5, pp. 763-787, December 2007, Available at SSRN: https://ssrn.com/abstract=1030881 or http://dx.doi.org/10.1111/j.1467-9914.2007.00391.x

Heather Dickey (Contact Author)

University of Aberdeen - Business School ( email )

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Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

Queen's University Belfast - Queen's Management School ( email )

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185 Stranmillis Road
Belfast, BT9 5EE
United Kingdom

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