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Wage disparities in Britain: people or place?

Gibbons, Stephen, Overman, Henry G. and Pelkonen, Panu (2010) Wage disparities in Britain: people or place? SERC Discussion Papers, SERCDP0060. Spatial Economics Research Centre (SERC), London School of Economics and Political Science, London, UK.

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Abstract

This paper investigates wage disparities across sub-national labour markets in Britain using anewly available microdata set. The findings show that wage disparity across areas is verypersistent over time. While area effects play a role in this wage disparity, most of it is due toindividual characteristics (sorting). Area effects contribute a very small percentage to theoverall variation of wages and so are not very important for understanding overall levels ofwage disparity. Specifically, in our preferred specification area effects explain less than 1of overall wage variation. This share has remained roughly constant over the period 1998-2008.

Item Type: Monograph (Discussion Paper)
Official URL: http://www.spatialeconomics.ac.uk/
Additional Information: © 2010 The Authors
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes
Sets: Departments > Geography and Environment
Research centres and groups > Spatial Economics Research Centre
Research centres and groups > Centre for Economic Performance (CEP)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: SERCDP0060
Date Deposited: 16 Dec 2010 10:23
URL: http://eprints.lse.ac.uk/30845/

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