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A Study in Structural Change: Relative Earnings in Wales Since the 1970s

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Author Info
Gavin Cameron
John Muellbauer
Jonathan Snicker

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Abstract

The Welsh economy has undergone rapid structural change in recent years. This paper uses data from the New Earnings Survey to examine how earnings in Wales changed relative to those of Great Britain between 1975 and 1994. There are five main findings. First, earnings of workers in Wales have declined relative to those in Great Britain. Second, the shift away from full-time men has been an important factor in the fall in average relative earnings. Third, the decline in the relative earnings of full-time men is mostly explained by falling relative earnings in construction, distribution and transport, as well as the failure of workers in banking and financial services in Wales to keep up with their counterparts in Great Britain. Fourth, the shift in full-time employment to health, education and other services has tended to support relative earnings. Fifth, the decline in full-time men's earnings relative to Great Britain seems to have been caused by long-run factors that are unlikely to naturally reverse themselves. Dans les années récentes, l'économie galloise a subi un changement structurel rapide. A partir des données provenant de la New Earnings Survey (une enquête auprès des salaires), cet article cherche à examiner l'évolution des salaires aux pays de Galles par rapport à l'évolution des salaires que touchent les travailleurs britanniques entre 1977 et 1994. On en a tiré les cinq conclusions suivantes. En premier, les salaires des travailleurs gallois ont diminué par rapport à ceux des travailleurs britanniques. En deuxième, la baisse des salaires relatifs moyens s'explique essentiellement par le déclin de l'emploi masculin à plein temps. En troisième, la baisse des salaires relatifs de l'emploi masculin s'explique en large partie par la diminution des salaires relatifs de ceux qui travaillent dans la construction, la distribution et le transport, aussi bien que par le fait que les salaires de ceux qui travaillent dans le secteur financier aux pays de Galles n'ont pas pris le même chemin que ceux de leurs homologues britanniques. En quatrième, le passage de l'emploi aux services de santé, d'éducation et à d'autres services a eu tendance à soutenir les salaires relatifs. En cinquième, il semble que, par rapport à la Grande-Bretagne, la baisse des salaires de l'emploi masculin à plein temps remonte aux variables à long terme et il est peu probable qu'il y ait un renversement de tendance naturel. Die walisische Wirtschaft ist in den letzten Jahren raschem strukturellen Umstellungen unterworfen gewesen. Dieser Aufsatz benutzt Daten der Neuen Einkommensübersicht (New Earnings Survey) zur Untersuchung von Einkommensänderungen in Wales im Verhältnis zu denen in Großbritannien überhaupt im Zeitraum 1975-1994. Es ergaben sich fünf Hauptbefunde: Erstens sind Einkommen in Wales im Verhältnis zu denen Großbritanniens gesunken. Zweitens stellte sich die Ablösung der Vollzeitbeschäftigung von Männern als ein bedeutender Faktor im Absinken relativer Durchschnittseinkommen heraus. Drittens erklärt sich der Rückgang in relativen Einkommen vollzeitig erwerbstätiger Männer größtenteils durch nachlassenden relativen Verdienst im Bau-, Vertriebs- und Verkehrswesen, wie auch durch den vergeblichen Versuch der in Banken und anderen Finanzinstituten in Wales Beschäftigten, es ihren Kollegen in Großbritannien gleich zu tun. Viertens neigte die Verlagerung der Erwerbstätigkeit auf die Gebiete Gesundheitswesen, Schulerziehung und andere Dienstleistungen dazu, relative Einkornmen zu fördern. Fünftens scheint das Absinken der Einkommen vollzeitig beschäftigter Männer im Verhältnis zu Großbritannien durch seit langem bestehende Faktoren verursacht worden zu sein, von denen kaum anzunehmen ist, daß sie auf natürliche Art rückläufig werden.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 36 (2002)
Issue (Month): 1 (February)
Pages: 1-11
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Handle: RePEc:taf:regstd:v:36:y:2002:i:1:p:1-11

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Related research
Keywords: Earnings; Unemployment; Wales; Structural Change; New Earnings Survey;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Blackaby, D H & Manning, D N, 1992. "Regional Earnings and Unemployment--A Simultaneous Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(4), pages 481-501, November.
  2. Cameron, Gavin & Muellbauer, John, 1998. "The Housing Market and Regional Commuting and Migration Choices," CEPR Discussion Papers 1945, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Muellbauer, John & Murphy, Anthony, 1997. "Booms and Busts in the UK Housing Market," CEPR Discussion Papers 1615, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Blanchflower, David G & Oswald, Andrew J, 1990. " The Wage Curve," Scandinavian Journal of Economics, Blackwell Publishing, vol. 92(2), pages 215-35.
    Other versions:
    • Blanchflower, D. & Oswald, A., 1989. "The Wage Curve," Papers 340, London School of Economics - Centre for Labour Economics.
    • David G. Blanchflower & Andrew J. Oswald, 1990. "The Wage Curve," NBER Working Papers 3181, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    • David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x.
  5. Robert Rowthorn, 2000. "The Political Economy of Full Employment in Modern Britain," ESRC Centre for Business Research - Working Papers wp164, ESRC Centre for Business Research. [Downloadable!]
  6. Michael Baker & Nicole M. Fortin, 1999. "Women's Wages in Women's Work: A U.S./Canada Comparison of the Roles of Unions and "Public Goods" Sector Jobs," American Economic Review, American Economic Association, vol. 89(2), pages 198-203, May. [Downloadable!] (restricted)
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  7. Cameron, Gavin & Muellbauer, John, 2000. "Earnings Biases in the United Kingdom Regional Accounts: Some Economic Policy and Research Implications," Economic Journal, Royal Economic Society, vol. 110(464), pages F412-29, June. [Downloadable!] (restricted)
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