Citation

Discussion Paper Details

Please find the details for DP4213 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Relative Wage Variation and Industry Location

Author(s): Andrew B. Bernard, Stephen J. Redding, Peter K. Schott and Helen Simpson

Publication Date: January 2004

Keyword(s): de-industrialization, diversification cones and relative factor prices

Programme Area(s): International Trade and Regional Economics

Abstract: Relative wages vary considerably across regions of the United Kingdom, with skill-abundant regions exhibiting lower skill premia than skill-scarce regions. This Paper shows that the location of economic activity is correlated with the variation in relative wages. UK regions with low skill premia produce different sets of manufacturing industries than regions with high skill premia. Relative wages are also linked to subsequent economic development: over time, increases in the employment share of skill-intensive industries are greater in regions with lower initial skill premia. Both results suggest firms adjust production across and within regions in response to relative wage differences.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4213

Bibliographic Reference

Bernard, A, Redding, S, Schott, P and Simpson, H. 2004. 'Relative Wage Variation and Industry Location'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4213