Wage spillovers, inter-regional effects and the impact of inward investment
نویسندگان
چکیده
This paper evaluates the extent of inter-industry and inter-regional wage spillovers across the UK. A large literature exists suggesting that wages elsewhere affect wage determination and levels of satisfaction, but this paper extends the analysis of wage determination to examine the effects of inward investment in the process. Thus far the specific effect of foreign wages on domestic wage determination has not been evaluated. We employ industry and regional level panel data for the UK, and contrast results from three alternative approaches to space-time modelling. Each supports the notion that such wage spillovers do occur, though assumptions made concerning the modelling of spatial interaction are important. Further, such wage spillovers are more widespread for skilled, than for unskilled workers and also lower in areas of high unemployment. JEL Classification: J21; J30
منابع مشابه
Domestic wage determination: Regional Spillovers and inward investment
This paper evaluates the extent of interindustry, and inter-regional wage spillovers across the UK. A large literature exists suggesting that wages elsewhere affect wage determination and levels of satisfaction, but this paper extends the analysis to examine the effects of inward investment in the process. Thus far the specific effect of foreign wages on domestic wage determination has not been...
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