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Earnings, Unemployment and Contiguity: Evidence from British Counties 1976-1992

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  • Manning, Neil

Abstract

This paper considers a simple relationship between male earnings and unemployment and analyzes British data collected at the county level over the period 1976-92. The estimates of a dynamic model on a balanced panel of county data suggest that the elasticity of earnings with respect to unemployment is of the order of -0 to 1, with some variation being evident between manual and nonmanual men. A binary contiguity matrix is used to model spillover effects between counties and both earnings and unemployment spillover effects are significant. Copyright 1994 by Scottish Economic Society.

Suggested Citation

  • Manning, Neil, 1994. "Earnings, Unemployment and Contiguity: Evidence from British Counties 1976-1992," Scottish Journal of Political Economy, Scottish Economic Society, vol. 41(1), pages 43-68, February.
    • Handle: RePEc:bla:scotjp:v:41:y:1994:i:1:p:43-68
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    Cited by:

    1. Michelle Gilmartin & David Learmouth & J Kim Swales & Peter McGregor & Karen Turner, 2013. "Regional Policy Spillovers: The National Impact of Demand-Side Policy in an Interregional Model of the UK Economy," Environment and Planning A, , vol. 45(4), pages 814-834, April.
    2. Guilherme Cemin Paula & André M. Marques, 2022. "Brazilian Wage Curve: Further Evidence Based on Spatial Interactions in Times of Recession, 2012–2019," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(3), pages 689-708, September.
    3. Paul L. Latreille & Neil Manning, 2000. "Inter‐industry and Inter‐occupational Wage Spillovers in UK Manufacturing," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(1), pages 83-99, February.
    4. Nigel Driffield & Sourafel Girma, 2003. "Regional Foreign Direct Investment and Wage Spillovers: Plant Level Evidence from the UK Electronics Industry," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(4), pages 453-474, September.
    5. Nigel Driffield & Karl Taylor, 2006. "Wage Spillovers, Inter-regional Effects and the Impact of Inward Investment," Spatial Economic Analysis, Taylor & Francis Journals, vol. 1(2), pages 187-205.
    6. Joanna Tyrowicz & Piotr Wojcik, 2011. "Nonlinear Stochastic Convergence Analysis of Regional Unemployment Rates in Poland," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 3(1), pages 59-79, July.
    7. Bernard FINGLETON & Silvia PALOMBI, 2013. "The Wage Curve Reconsidered: Is It Truly An 'Empirical Law Of Economics'?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 49-92.
    8. Niebuhr, Annekatrin, 2002. "Spatial dependence of regional unemployment in the European Union," HWWA Discussion Papers 186, Hamburg Institute of International Economics (HWWA).

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