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

Posted: 21 Feb 2008

See all articles by Heather Dickey

Heather Dickey

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

Multiple version iconThere are 2 versions of this paper

Date Written: November 2004

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 to 1995 by estimating regional fixed-effects earnings equations. Using panel dataset 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.

Keywords: Increasing regional earnings inequality, Fixed-effects earnings equations

JEL Classification: J31, R23

Suggested Citation

Dickey, Heather, Regional Earnings Inequality in Great Britain: Evidence from Fixed-Effects Regressions (November 2004). Available at SSRN: https://ssrn.com/abstract=1096119

Heather Dickey (Contact Author)

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

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

Riddel Hall
185 Stranmillis Road
Belfast, BT9 5EE
United Kingdom

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