Relative Wage Variation and Industry Location in the United Kingdom
AbstractThis paper shows that both relative wages and industry structure vary considerably across regions of the United Kingdom. In accordance with the neoclassical model of trade, regions abundant in a factor (i) exhibit lower relative prices of that factor than regions scarce in the factor, and (ii) tend to specialize in a mix of industries intensive in the use of the factor. We show that this specialization leads UK regions to be asymmetrically exposed to external macroeconomic or international trade shocks. Copyright (c) Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2008.
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Bibliographic InfoArticle provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.
Volume (Year): 70 (2008)
Issue (Month): 4 (08)
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