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Earnings convergence in UK counties: a distribution dynamics approach

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  • Paul Bishop
  • Peter Gripaios

Abstract

This study applies a distribution dynamics approach to examining the evolution of average earnings of UK counties. An analysis of both transition probability matrices and stochastic kernels suggests considerable persistence in the overall distribution rather than economic convergence. However, there is evidence of a large number of counties congregating at the lower end of the distribution reflecting some downward mobility from the middle. Spatial effects are also important with counties in the South East appearing to gravitate towards the upper end of the distribution. The analysis reveals a more complex pattern of dynamics than is typically apparent from β regression approaches.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:apeclt:v:13:y:2006:i:1:p:29-33
    DOI: 10.1080/13504850500188588
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    References listed on IDEAS

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    1. Damien Neven & Claudine Gouymte, 1995. "Regional Convergence in the European Community," Journal of Common Market Studies, Wiley Blackwell, vol. 33(1), pages 47-65, March.
    2. 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.
    3. Paul Cheshire, 2000. "Endogenous Processes in European Regional Growth: Convergence and Policy," Growth and Change, Wiley Blackwell, vol. 31(4), pages 455-479.
    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. Helmut Hofer & Andreas Worgotter, 1997. "Regional Per Capita Income Convergence in Austria," Regional Studies, Taylor & Francis Journals, vol. 31(1), pages 1-12.
    6. Bickenbach, Frank & Bode, Eckhardt, 2001. "Markov or not Markov - this should be a question," Kiel Working Papers 1086, Kiel Institute for the World Economy (IfW).
    7. 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.
    8. Andrew Henley, 2005. "On regional growth convergence in Great Britain," Regional Studies, Taylor & Francis Journals, vol. 39(9), pages 1245-1260.
    9. Fingleton, Bernard, 1997. "Specification and Testing of Markov Chain Models: An Application to Convergence in the European Union," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(3), pages 385-403, August.
    10. Bulli, Sandra, 2001. "Distribution Dynamics and Cross-Country Convergence: A New Approach," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 226-243, May.
    11. repec:cep:stiecm:/1993/265 is not listed on IDEAS
    12. Magrini, Stefano, 1999. "The evolution of income disparities among the regions of the European Union," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 257-281, March.
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    Cited by:

    1. Cheong, Tsun Se & Wu, Yanrui, 2013. "Regional disparity, transitional dynamics and convergence in China," Journal of Asian Economics, Elsevier, vol. 29(C), pages 1-14.
    2. Peter Gripaios & Paul Bishop & Trevor Hart & Eric McVittie, 2008. "Analysing the impact of Objective 1 funding in Europe: a review," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 26(3), pages 499-524, June.

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