Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71575
Authors: 
Bernard, Andrew B.
Redding, Stephen
Schott, Peter K.
Simpson, Helen
Year of Publication: 
2003
Series/Report no.: 
IFS Working Papers, Institute for Fiscal Studies (IFS) 03/17
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. U.K. 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.
Subjects: 
Deindustrialization
Relative Factor Prices
Diversification Cones
JEL: 
F11
F14
C14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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