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Regional Earnings Inequality in Great Britain: Evidence from Fixed-effects Regressions

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  • Heather Dickey

Abstract

Earnings inequality in Great Britain has increased substantially over the last two decades at both the national and regional levels. This paper examines the determinants of regional hourly earnings over the period 1976-95 by estimating regional fixed-effects earnings equations. Using panel data from the New Earnings Survey, individual-specific heterogeneity is controlled for, and superior estimates of the factors affecting regional earnings are obtained. Increasing returns to skill, increasing industrial differentials, and increasing premiums for older workers are found to have contributed to increasing regional earnings inequality, and consequently rising earnings inequality at the national level. Copyright 2007 The Author. Journal compilation CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd. 2007.

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  • Heather Dickey, 2007. "Regional Earnings Inequality in Great Britain: Evidence from Fixed-effects Regressions," LABOUR, CEIS, vol. 21(4-5), pages 763-787, December.
  • Handle: RePEc:bla:labour:v:21:y:2007:i:4-5:p:763-787
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    Cited by:

    1. Neil Lee & Andrés Rodríguez-Pose, 2013. "Innovation and spatial inequality in Europe and USA," Journal of Economic Geography, Oxford University Press, vol. 13(1), pages 1-22, January.
    2. Andrés Rodríguez-Pose & Vassilis Tselios, 2009. "Education And Income Inequality In The Regions Of The European Union," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 411-437.
    3. repec:taf:regstd:v:50:y:2016:i:10:p:1714-1727 is not listed on IDEAS
    4. Neil Lee & Paul Sissons & Katy Jones, 2016. "The Geography of Wage Inequality in British Cities," Regional Studies, Taylor & Francis Journals, vol. 50(10), pages 1714-1727, October.
    5. Murillo Huertas, Inés P. & Ramos, Raul & Simón, Hipólito, 2017. "Revisiting Interregional Wage Differentials: New Evidence from Spain with Matched Employer-Employee Data," IZA Discussion Papers 11122, Institute for the Study of Labor (IZA).

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