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

Helena Marques and Hugh Metcalf

Manchester School, 2009, vol. 77, issue 1, 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.

Date: 2009
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https://doi.org/10.1111/j.1467-9957.2008.02087.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:manchs:v:77:y:2009:i:1:p:65-81

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