MANUFACTURING WAGES IN THE ENLARGED EU: THE ROLE OF NEIGHBOUR-COUNTRY EFFECTS

Helena Marques () and Hugh Metcalf

Manchester School, 2009, vol. 77, issue 1, pages 65-81

Abstract: In this paper a New Economic Geography type wage equation is estimated for the EU-25. The determinants of manufacturing wages are shown to be sector-specific and the role of geography is limited. As a consequence, we show that the improvement of the EU's internal market and the evolution of European geography are likely to favour larger EU members and challenge smaller ones. Copyright © 2009 The Authors. Journal compilation © 2009 Blackwell Publishing Ltd and The University of Manchester.

Date: 2009

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