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Industry Characteristics and Inter-regional Wage Differences

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  • Blackaby, David H
  • Murphy, Philip D

Abstract

This paper utilizes two large micro data sets--the General Household Survey and the New Earnings Survey--to identify those factors that influence the interregional wage structure. Industry-regional wage mark-ups are generated from a traditional human capital model and are then used to examine the effect that industry-regional averages, like bargaining type, firm size, demand pressures, and consumer prices, have on residual hourly earnings differentials. The significance of union bargaining variables, together with the low elasticity found on unemployment, cast some doubt on a traditional competitive equilibrium model of wage determination. Copyright 1991 by Scottish Economic Society.

Suggested Citation

  • Blackaby, David H & Murphy, Philip D, 1991. "Industry Characteristics and Inter-regional Wage Differences," Scottish Journal of Political Economy, Scottish Economic Society, vol. 38(2), pages 142-161, May.
    • Handle: RePEc:bla:scotjp:v:38:y:1991:i:2:p:142-61
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    Cited by:

    1. 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.
    2. Monastiriotis, Vassilis, 1999. "Is declining union density increasing regional inequalities? Trade Unions, regional economic performance and regional disparities in the UK," ERSA conference papers ersa99pa182, European Regional Science Association.
    3. 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.
    4. Hipolito Simon & Raul Ramos & Esteban Sanroma, 2006. "Collective bargaining and regional wage differences in Spain: an empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1749-1760.
    5. Vassilis Monastiriotis, 2003. "Union Retreat and Regional Economic Performance: the UK in the 1990s," Urban/Regional 0302006, University Library of Munich, Germany.
    6. J. Strand & M. Marchand & Y. Chung & R. Färe & F. Lichtenberg & W. Rogerson & J. Weidmann & P. Kort & P. Schönfeld, 1996. "Book Reviews," Journal of Economics, Springer, vol. 63(3), pages 325-345, October.
    7. Hipolito Simon & Raul Ramos & Esteban Sanroma, 2006. "Collective bargaining and regional wage differences in Spain: an empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1749-1760.

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