Relative Wage Variation and Industry Location in the United Kingdom

• Autores: Andrew B. Bernard, Stephen J. Redding, Peter K. Schott, Helen Simpson
• Localización: Oxford bulletin of economics and statistics, ISSN 0305-9049, Vol. 70, Nº. 4, 2008, págs. 431-459
• Idioma: inglés
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• Resumen

  • This paper shows that both relative wages and industry structure vary considerably across regions of the United Kingdom. In accordance with the neoclassical model of trade, regions abundant in a factor (i) exhibit lower relative prices of that factor than regions scarce in the factor, and (ii) tend to specialize in a mix of industries intensive in the use of the factor. We show that this specialization leads UK regions to be asymmetrically exposed to external macroeconomic or international trade shocks.