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Earnings biases and convergence in the UK: a county level analysis

  • Paul Bishop
  • Peter Gripaios
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    Cameron and Muellbauer (Economic Journal, 110, pp. 412-19, 2000) have convincingly argued that problems in the methods used to compile UK Regional Accounts data have resulted in a misleading picture of regional differentials and σ convergence. This short paper extends their analysis to a wider range of measures of convergence and adopts a more disaggregated approach by analysing data at the county level. The results provide general support for their hypothesis and indicate that different measures of income can result in different conclusions concerning convergence. Thus, it is essential that future studies of convergence investigate the implications of using different measures of income where possible, rather than relying upon a single data source.

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    Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

    Volume (Year): 11 (2004)
    Issue (Month): 1 ()
    Pages: 33-37

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    Handle: RePEc:taf:apeclt:v:11:y:2004:i:1:p:33-37
    DOI: 10.1080/1350485042000187444
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    1. Peter Gripaios & Paul Bishop & Sarah Keast, 2000. "Differences in GDP per head in GB counties: some suggested explanations," Applied Economics, Taylor & Francis Journals, vol. 32(9), pages 1161-1167.
    2. Damien Neven & Claudine Gouymte, 1995. "Regional Convergence in the European Community," Journal of Common Market Studies, Wiley Blackwell, vol. 33(1), pages 47-65, 03.
    3. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
    4. Peter Gripaios & Ben Gripaios & Sarah Keast & Nick Wiseman, 1999. "Differences in household income per head over the UK trade cycle; a comment," Applied Economics Letters, Taylor & Francis Journals, vol. 6(8), pages 471-476.
    5. Boyle, G E & McCarthy, T G, 1997. "A Simple Measure of Beta-Convergence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 257-64, May.
    6. Bernard, A.B. & Durlauf, S.N., 1993. "Convergence in International Output," Working papers 93-7, Massachusetts Institute of Technology (MIT), Department of Economics.
    7. G. E. Boyle & T. G. McCARTHY, 1999. "Simple measures of convergence in per capita GDP: a note on some further international evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 6(6), pages 343-347.
    8. Gerry Boyle; & Tom McCarthy, 1997. "Simple Measures of Convergence in Per Capita GDP: A Note on Some Further International Evidence," Economics, Finance and Accounting Department Working Paper Series n751197, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
    9. Helmut Hofer & Andreas Worgotter, 1997. "Regional Per Capita Income Convergence in Austria," Regional Studies, Taylor & Francis Journals, vol. 31(1), pages 1-12.
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