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Earnings, Unemployment and Britain's North-South Divide: Real or Imaginary?

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  • Blackaby, D H
  • Murphy, P D

Abstract

Using cross-section data for 1983, the paper attempts to shed light on the extent of Britain's North-South divide. Hedonic wage equations corrected for selectivity bias have been estimated for both manual and nonmanual employees to assess whether they compete in spatially distinct labor markets. Differences in the mean and variance of earnings between the areas are decomposed into components that can be attributed either to structural or to characteristic differences. Finally, factors determining the probability of unemployment in the North and the South are examined and the degree of the labor-market flexibility assessed. Copyright 1995 by Blackwell Publishing Ltd

Suggested Citation

  • Blackaby, D H & Murphy, P D, 1995. "Earnings, Unemployment and Britain's North-South Divide: Real or Imaginary?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(4), pages 487-512, November.
    • Handle: RePEc:bla:obuest:v:57:y:1995:i:4:p:487-512
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    Citations

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    Cited by:

    1. Monastiriotis, Vassilis, 2006. "Macro-determinants of UK regional unemployment and the role of employment flexibility," MPRA Paper 44, University Library of Munich, Germany.
    2. Rycx, François & Saks, Yves & Tojerow, Ilan, 2016. "Misalignment of Productivity and Wages across Regions? Evidence from Belgian Matched Panel Data," IZA Discussion Papers 10336, Institute of Labor Economics (IZA).
    3. Gavin Cameron & John Muellbauer & Jonathan Snicker, 2002. "A Study in Structural Change: Relative Earnings in Wales Since the 1970s," Regional Studies, Taylor & Francis Journals, vol. 36(1), pages 1-11.
    4. Wouter Vermeulen & Jos Van Ommeren, 2009. "Compensation of Regional Unemployment in Housing Markets," Economica, London School of Economics and Political Science, vol. 76(301), pages 71-88, February.
    5. Vizer, David, 2011. "Behind the North-South divide: A decomposition analysis," MPRA Paper 28364, University Library of Munich, Germany.
    6. Gabriela Grotkowska, 2016. "Regional variation in the public sector wage premium in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 46.
    7. Paula Herrera-Idárraga & Enrique López-Bazo & Elisabet Motellón, 2016. "Regional Wage Gaps, Education and Informality in an Emerging Country: The Case of Colombia," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(4), pages 432-456, October.
    8. Jean-Baptiste Combes & Eric Delattre & Bob Elliott & Diane Skåtun, 2015. "Hospital staffing and local pay: an investigation into the impact of local variations in the competitiveness of nurses’ pay on the staffing of hospitals in France," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(7), pages 763-780, September.
    9. Sergey K. Aityan & Alexey K. Ivanov-Schitz & Eugenia Logunova, 2017. "Measuring the Nonmonetary Component of General Value for Goods and Services," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 69-81.
    10. Aurora Galego & João Pereira, 2014. "Decomposition of Regional Wage Differences Along the Wage Distribution in Portugal: The Importance of Covariates," Environment and Planning A, , vol. 46(10), pages 2514-2532, October.
    11. Antonio Garofalo & Rosalia Castellano & Gennaro Punzo & Gaetano Musella, 2018. "Skills and labour incomes: how unequal is Italy as part of the Southern European countries?," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(4), pages 1471-1500, July.
    12. Stephen Drinkwater, 2003. "Estimating the willingness to move within Great Britain: Importance and implications," School of Economics Discussion Papers 1203, School of Economics, University of Surrey.
    13. Monastiriotis, Vassilis, 2000. "Inter- And Intra-Regional Wage Inequalities In The Uk: An Examination Of The Sources Of Uk Wage Inequalities And Their Evolution," ERSA conference papers ersa00p228, European Regional Science Association.
    14. Inés P. Murillo Huertas & Raúl Ramos & Hipólito Simón, 2020. "Revisiting interregional wage differentials: New evidence from Spain with matched employer‐employee data," Journal of Regional Science, Wiley Blackwell, vol. 60(2), pages 296-347, March.
    15. Stephen Drinkwater & David Blackaby, 2004. "Migration and Labour Market Differences: The Case of Wales," School of Economics Discussion Papers 0604, School of Economics, University of Surrey.
    16. Elliott, Robert F. & Ma, Ada H.Y. & Scott, Anthony & Bell, David & Roberts, Elizabeth, 2007. "Geographically differentiated pay in the labour market for nurses," Journal of Health Economics, Elsevier, vol. 26(1), pages 190-212, January.
    17. Rice, P., 2002. "The great divide: regional differences in education and training," Discussion Paper Series In Economics And Econometrics 201, Economics Division, School of Social Sciences, University of Southampton.
    18. Lubomira Anastassova, 2006. "Productivity Differences and Agglomeration Across Districts of Great Britain," CERGE-EI Working Papers wp289, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    19. Rice, P., 2002. "The great divide: regional differences in education and training," Discussion Paper Series In Economics And Econometrics 0201, Economics Division, School of Social Sciences, University of Southampton.
    20. Vassilis Monastiriotis, 2007. "Patterns of spatial association and their persistence across socio-economic indicators: the case of the Greek regions," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 05, Hellenic Observatory, LSE.

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