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Earnings Biases in the United Kingdom Regional Accounts: Some Economic Policy and Research Implications

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  • Cameron, Gavin
  • Muellbauer, John

Abstract

Between the late 1970s and late 1980s, the UK Regional Accounts data suggest a much smaller rise in the South East earnings premium and consequently a much smaller increase in the regional dispersion of earnings than do the other sources of data. We discuss several possible explanations for this discrepancy and conclude it was probably due to problems at the Inland Revenue in allocating tax records across the regions. The historical unreliability of the Regional Accounts has implications for economic research on regional consumption and convergence and may have caused the poorest regions to miss out on EU Structural Funds.

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  • 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 412-429, June.
  • Handle: RePEc:ecj:econjl:v:110:y:2000:i:464:p:f412-29
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    Citations

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    Cited by:

    1. 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.
    2. Bernard, Andrew B. & Redding, Stephen J. & Schott, Peter K. & Simpson, Helen, 2002. "Factor Price Equalization in the UK?," CEPR Discussion Papers 3523, C.E.P.R. Discussion Papers.
    3. Salvador Barrios & Marius Br¸lhart & Robert J.R. Elliott & Marianne Sensier, 2003. "A Tale of Two Cycles: Co-Fluctuations Between UK Regions and the Euro Zone," Manchester School, University of Manchester, vol. 71(3), pages 265-292, June.
    4. Rokicki, Bartlomiej & Hewings, Geoffrey J.D., 2016. "Regional convergence within particular country — An approach based on the regional price deflators," Economic Modelling, Elsevier, vol. 57(C), pages 171-179.
    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. repec:esx:essedp:729 is not listed on IDEAS
    7. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth,in: Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779 Elsevier.
    8. Aron, Janine & Muellbauer, John & Murphy, Anthony, 2006. "Housing wealth, credit conditions and consumption," MPRA Paper 24485, University Library of Munich, Germany.
    9. Cameron, G. & Muellbauer, J., 1999. "Earnings, Unemployment, and Housing: Evidence from a Panel of British Regions," Economics Papers 1999-w7, Economics Group, Nuffield College, University of Oxford.
    10. 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.
    11. Gavin Cameron & John Muellbauer & Anthony Murphy, 2006. "Was There A British House Price Bubble? Evidence From A Regional Panel," ERES eres2006_150, European Real Estate Society (ERES).
    12. Cameron, Gavin & Muellbauer, John & Murphy, Anthony, 2006. "Housing Market Dynamics and Regional Migration in Britain," CEPR Discussion Papers 5832, C.E.P.R. Discussion Papers.
    13. repec:nbp:nbpbik:v:48:y:2017:i:6:p:531-556 is not listed on IDEAS
    14. Paul Bishop & Peter Gripaios, 2006. "Earnings convergence in UK counties: a distribution dynamics approach," Applied Economics Letters, Taylor & Francis Journals, vol. 13(1), pages 29-33.
    15. Carlo Morelli & Paul Seaman, 2005. "Devolution and Inequality: A sorry tale of ineffectual government and failure to create a community of equals?," Dundee Discussion Papers in Economics 181, Economic Studies, University of Dundee.
    16. Stewart, Kitty, 2002. "Measuring well-being and exclusion in Europe's regions," LSE Research Online Documents on Economics 6395, London School of Economics and Political Science, LSE Library.
    17. Peter Gripaios & Paul Bishop, 2005. "Spatial inequalities in UK GDP per head: The role of private and public services," The Service Industries Journal, Taylor & Francis Journals, vol. 25(8), pages 945-958, December.
    18. Kitty Stewart, 2002. "Measuring Well-Being and Exclusion in Europes Regions," CASE Papers case53, Centre for Analysis of Social Exclusion, LSE.
    19. 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.
    20. Gavin Cameron & John Muellbauer & Anthony Murphy, 2005. "Booms, Busts and Ripples in British Regional Housing Markets," Macroeconomics 0512003, EconWPA.
    21. Kitty Stewart, 2002. "Measuring Well-Being and Exclusion in Europe s Regions," LIS Working papers 303, LIS Cross-National Data Center in Luxembourg.

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