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Regional Wage Disparities in Europe: What role for Market Access?

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  • López-Rodríguez , Jesús

    () (University of A Coruña)

  • Faíña, Andrés

    () (University of A Coruña)

Abstract

This paper uses a New Economic Geography model to test for wagedisparities in the European Union. We derive and estimate an econometric specificationrelating wages to a distance weighted sum of regional GDP’s. The empirical estimationsof the model were carried out for a sample of 160 NUTS2 regions in theEU15 for the year 2000 showing that geography of access to markets is statisticallysignificant and quantitatively important in explaining cross-region variation in Europeanwages. We also show that incentives for human capital accumulation and innovationactivities arising from market access size are also affecting the shaping of regionalwages in the European Union.

Suggested Citation

  • López-Rodríguez , Jesús & Faíña, Andrés, 2007. "Regional Wage Disparities in Europe: What role for Market Access?," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 11, pages 5-23.
  • Handle: RePEc:ris:invreg:0123
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    References listed on IDEAS

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    Cited by:

    1. Andrzej Cieślik & Bartłomiej Rokicki, 2016. "European Integration and Spatial Wage Structure in Poland," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(4), pages 435-453, September.
    2. ANDRADE, Carlos & PINHO, Carlos & PINHO, Maria de Fátima, 2010. "Exploring Regional Convergence: Evidence From 19 European Countries, 1991-2008," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    3. Reinhold Kosfeld & Hans-Friedrich Eckey, 2010. "Market access, regional price level and wage disparities: the German case," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(2), pages 105-128, September.

    More about this item

    Keywords

    Economic Development; Economic Geography; Spatial structure; European Union;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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