Wage Gradients in an Enlarged EU

Marques, Helena; Metcalf, Hugh

doi:10.2139/ssrn.1171036

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Wage Gradients in an Enlarged EU

U of Loughborough Economics Discussion Paper No. 2003-13

26 Pages Posted: 23 Jul 2008

See all articles by Helena Marques

Helena Marques

University of the Balearic Islands - Departament d'Economia Aplicada

Hugh Metcalf

University of Newcastle - Business School

Date Written: July 23, 2008

Abstract

In this paper we estimate a sectoral real wage equation for three regional blocs of the enlarged EU that we defined as North (wealthiest EU), South (Greece, Portugal and Spain) and East (acceding Central and Eastern European countries). The estimation results show that real wages react differently in each of the blocs to the impact of market size, location and factor endowments across a range of industrial sectors which differ by their degrees of economies of scale and skill-intensities in the presence of transport costs.

Keywords: wage equation, labour demand, human capital, EU enlargement

JEL Classification: F15, F22, J31, L6

Suggested Citation: Suggested Citation

Marques, Helena and Metcalf, Hugh, Wage Gradients in an Enlarged EU (July 23, 2008). U of Loughborough Economics Discussion Paper No. 2003-13, Available at SSRN: https://ssrn.com/abstract=1171036 or http://dx.doi.org/10.2139/ssrn.1171036