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

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  • Gavin Cameron
  • John Muellbauer

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 seem to be an equilibrium phenomenon that will not naturally reverse itself.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 61.

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Date of creation: 01 Jan 2001
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Handle: RePEc:oxf:wpaper:61

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Keywords: earnings; unemployment; Wales; structural change; New Earnings Survey;

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  1. Muellbauer, J & Murphy, A, 1996. "Booms and Busts in the UK Housing Market," Economics Papers 125, Economics Group, Nuffield College, University of Oxford.
  2. Michael Baker & Nicole M. Fortin, 1999. "Women's Wages in Women's Work: A US/Canada Comparison of the Roles of Unions and Public Goods Sector Jobs," CIRANO Working Papers 99s-02, CIRANO.
  3. Cameron, Gavin & Muellbauer, John, 1998. "The Housing Market and Regional Commuting and Migration Choices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(4), pages 420-46, September.
  4. Blanchflower, D. & Oswald, A., 1989. "The Wage Curve," Papers 340, London School of Economics - Centre for Labour Economics.
  5. Gavin Cameron & John Muellbauer, 2001. "Earnings, unemployment, and housing in Britain," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 203-220.
  6. 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.
  7. repec:sae:niesru:v:142:y::i:1:p:88-98 is not listed on IDEAS
  8. John Lovering, 1999. "Theory Led by Policy: The Inadequacies of the 'New Regionalism' (Illustrated from the Case of Wales)," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(2), pages 379-395, 06.
  9. 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.
  10. 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.
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