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Convergence of labour's factor reward between regions of the EU

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  • Don Webber

Abstract

This note reports research undertaken to establish whether the factor price for labour has converged across regions of the European Union between 1980 and 1994. A Markov chain is employed to examine relative average regional pay for a cross-section of 57 EU regions. Results suggest average regional pay converged over the whole period. This finding supports the hypothesis that economically integrating economies face a progressively similar level of factor rewards. However, the process slowed around 1992 and the reason for this warrants investigation.

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File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/135048501750157666&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 8 (2001)
Issue (Month): 5 ()
Pages: 355-357

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Handle: RePEc:taf:apeclt:v:8:y:2001:i:5:p:355-357

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Cited by:
  1. Novotný, JOSEF, 2011. "Convergence and divergence in living standards among regions of the enlarged European Union (1992-2006)," MPRA Paper 34145, University Library of Munich, Germany.
  2. N. Vijayamohanan Pillai, 2004. "Causality and error correction in Markov chain: Inflation in India revisited," Centre for Development Studies, Trivendrum Working Papers 366, Centre for Development Studies, Trivendrum, India.
  3. Josef Novotný, 2010. "Regional Convergence, Divergence and Other Aspects of Distributional Dynamics of European Regions in the Period 1992-2006," Politická ekonomie, University of Economics, Prague, vol. 2010(2), pages 166-185.
  4. Joan Costa-i-Font & Ramon Tremosa-i-Balcells, . "Spanish Regions and the Macroeconomic Benefits of European Monetary Union (EMU)," Studies on the Spanish Economy 89, FEDEA.

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