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Convergence of labour's factor reward between regions of the EU

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  • Don Webber

Abstract

This note reports research undertaken to establish whether the factor price for labour has converged across regions of the European Union between 1980 and 1994. A Markov chain is employed to examine relative average regional pay for a cross-section of 57 EU regions. Results suggest average regional pay converged over the whole period. This finding supports the hypothesis that economically integrating economies face a progressively similar level of factor rewards. However, the process slowed around 1992 and the reason for this warrants investigation.

Suggested Citation

  • Don Webber, 2001. "Convergence of labour's factor reward between regions of the EU," Applied Economics Letters, Taylor & Francis Journals, vol. 8(5), pages 355-357.
  • Handle: RePEc:taf:apeclt:v:8:y:2001:i:5:p:355-357
    DOI: 10.1080/135048501750157666
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    Cited by:

    1. Novotný, JOSEF, 2011. "Convergence and divergence in living standards among regions of the enlarged European Union (1992-2006)," MPRA Paper 34145, University Library of Munich, Germany.
    2. N. Vijayamohanan Pillai, 2004. "Causality and error correction in Markov chain: Inflation in India revisited," Centre for Development Studies, Trivendrum Working Papers 366, Centre for Development Studies, Trivendrum, India.
    3. Josef Novotný, 2010. "Regionální ekonomická konvergence, divergence a další aspekty distribuční dynamiky evropských regionů v období 1992-2006
      [Regional Convergence, Divergence and Other Aspects of Distributional Dynami
      ," Politická ekonomie, University of Economics, Prague, vol. 2010(2), pages 166-185.
    4. Joan Costa-i-Font & Ramon Tremosa-i-Balcells, "undated". "Spanish Regions and the Macroeconomic Benefits of European Monetary Union (EMU)," Studies on the Spanish Economy 89, FEDEA.

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