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Local Pay Determination


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  • Molho, Ian
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    Theoretical models of local pay are reviewed, ranging from neoclassical perspectives, unemployment/wage trade-off models, and segmented labor market approaches. The empirical work on U.S. North-South differentials is discussed. For the U.K., studies of the extent of and trends in geographical pay differentials are considered, as well as behavioral explanations focusing on the role of excess demand. The issue of adjustment processes is then discussed, both in theory and in relation to empirical work for the U.S. and U.K. This discussion focuses largely on geographical spillover effects, in terms of origins, evidence, and issues of identification. Finally, the impact of certain impediments in the adjustment process are considered, specifically in relation to the U.K. These concern the role and influence of national wage bargaining, as well as factors inhibiting labor migration stemming from the housing market and the climate of the national labor market. Copyright 1992 by Blackwell Publishers Ltd

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    Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

    Volume (Year): 6 (1992)
    Issue (Month): 2 ()
    Pages: 155-94

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    Handle: RePEc:bla:jecsur:v:6:y:1992:i:2:p:155-94

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    Cited by:
    1. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "Spatial Heterogeneity and the Wage Curve Revisited," ERSA conference papers ersa04p115, European Regional Science Association.
    2. Jefferson Andronio Ramundo Staduto & Amarildo Hersen, 2011. "Decomposition of labor earnings: an analysis between metropolitan regions and non-metropolitan regions in Brazil," ERSA conference papers ersa10p113, European Regional Science Association.


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