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Industry Characteristics and Inter-regional Wage Differences

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  • Blackaby, David H
  • Murphy, Philip D
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    Abstract

    This paper utilizes two large micro data sets--the General Household Survey and the New Earnings Survey--to identify those factors that influence the interregional wage structure. Industry-regional wage mark-ups are generated from a traditional human capital model and are then used to examine the effect that industry-regional averages, like bargaining type, firm size, demand pressures, and consumer prices, have on residual hourly earnings differentials. The significance of union bargaining variables, together with the low elasticity found on unemployment, cast some doubt on a traditional competitive equilibrium model of wage determination. Copyright 1991 by Scottish Economic Society.

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    Bibliographic Info

    Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

    Volume (Year): 38 (1991)
    Issue (Month): 2 (May)
    Pages: 142-61

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    Handle: RePEc:bla:scotjp:v:38:y:1991:i:2:p:142-61

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    Cited by:
    1. Elliott, Robert F. & Ma, Ada H.Y. & Scott, Anthony & Bell, David & Roberts, Elizabeth, 2007. "Geographically differentiated pay in the labour market for nurses," Journal of Health Economics, Elsevier, vol. 26(1), pages 190-212, January.
    2. Monastiriotis, Vassilis, 1999. "Is declining union density increasing regional inequalities? Trade Unions, regional economic performance and regional disparities in the UK," ERSA conference papers ersa99pa182, European Regional Science Association.
    3. Vassilis Monastiriotis, 2003. "Union Retreat and Regional Economic Performance: the UK in the 1990s," Urban/Regional 0302006, EconWPA.
    4. J. Strand & M. Marchand & Y. Chung & R. Färe & F. Lichtenberg & W. Rogerson & J. Weidmann & P. Kort & P. Schönfeld, 1996. "Book Reviews," Journal of Economics, Springer, vol. 63(3), pages 325-345, October.

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