Convergence of labour's factor reward between regions of the EU

Don Webber

Applied Economics Letters, 2001, vol. 8, issue 5, 355-357

Abstract: This note reports research undertaken to establish whether the factor price for labour has converged across regions of the European Union between 1980 and 1994. A Markov chain is employed to examine relative average regional pay for a cross-section of 57 EU regions. Results suggest average regional pay converged over the whole period. This finding supports the hypothesis that economically integrating economies face a progressively similar level of factor rewards. However, the process slowed around 1992 and the reason for this warrants investigation.

Date: 2001
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DOI: 10.1080/135048501750157666

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