This paper evaluates the extent of inter- industry, and inter-regional wage spillovers across the UK. A large literature exists suggesting that wages elsewhere affect wage determination and levels of satisfaction, but this paper extends the analysis to examine the effects of inward investment in the process. Thus far the specific effect of foreign wages on domestic wage determination has not been evaluated. Using industry and regional level panel data for the UK the paper reports evidence that such wage spillovers do occur, and that they are more widespread for skilled, than for unskilled workers and also lower in areas of high unemployment.
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Publisher Info
Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number
02/12.
Length: Date of creation: Aug 2002 Date of revision: Handle: RePEc:lec:leecon:02/12
Contact details of provider: Postal: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK Phone: +44 (0)116 252 2887 Fax: +44 (0)116 252 2908 Email: Web page: http://www.le.ac.uk/economics/
Find related papers by JEL classification: J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General