Relative Wage Variation and Industry Location
27 Pages Posted: 30 Sep 2003
There are 3 versions of this paper
Relative Wage Variation and Industry Location
Relative Wage Variation and Industry Location
Date Written: September 2003
Abstract
Relative wages vary considerably across regions of the United Kingdom, with skill-abundant regions exhibiting lower skill premia than skill-scarce regions. This paper shows that the location of economic activity is correlated with the variation in relative wages. U.K. regions with low skill premia produce different sets of manufacturing industries than regions with high skill premia. Relative wages are also linked to subsequent economic development: over time, increases in the employment share of skill-intensive industries are greater in regions with lower initial skill premia. Both results suggest firms adjust production across and within regions in response to relative wage differences.
Keywords: Deindustrialization, Relative Factor Prices, Diversification Cones
JEL Classification: F11, F14, C14
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Factor Price Equality and the Economies of the United States
By Andrew B. Bernard, Stephen J. Redding, ...
-
Factor Price Equality and the Economies of the United States
By Andrew B. Bernard, J. Bradford Jensen, ...
-
Factor Price Equality and the Economies of the United States
By Andrew B. Bernard, Stephen J. Redding, ...
-
The Effect of Trade on the Demand for Skill - Evidence from the Interstate Highway System
By Guy Michaels
-
The Effect of Trade on the Demand for Skill - Evidence from the Interstate Highway System
By Guy Michaels
-
Spatial Determinants of Productivity: Analysis for the Regions of Great Britain
By Patricia Rice and Anthony J. Venables
-
The Fundamental Law of Road Congestion: Evidence from Us Cities
By Gilles Duranton and Matthew Turner
-
The Fundamental Law of Road Congestion: Evidence from US Cities
By Gilles Duranton and Matthew Turner
-
Factor Price Equalization in the UK?
By Andrew B. Bernard, Stephen J. Redding, ...