Industry Characteristics and Inter-regional Wage Differences

David H Blackaby and Philip D Murphy

Scottish Journal of Political Economy, 1991, vol. 38, issue 2, 142-61

Abstract: This paper utilizes two large micro data sets--the General Household Survey and the New Earnings Survey--to identify those factors that influence the interregional wage structure. Industry-regional wage mark-ups are generated from a traditional human capital model and are then used to examine the effect that industry-regional averages, like bargaining type, firm size, demand pressures, and consumer prices, have on residual hourly earnings differentials. The significance of union bargaining variables, together with the low elasticity found on unemployment, cast some doubt on a traditional competitive equilibrium model of wage determination. Copyright 1991 by Scottish Economic Society.

Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:38:y:1991:i:2:p:142-61

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Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

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