Wage Disparities in Britain: People or Place?

Stephen Gibbons, Henry Overman and Panu Pelkonen

SERC Discussion Papers from Centre for Economic Performance, LSE

Abstract: This paper investigates wage disparities across sub-national labour markets in Britain using a newly available microdata set. The findings show that wage disparity across areas is very persistent over time. While area effects play a role in this wage disparity, most of it is due to individual characteristics (sorting). Area effects contribute a very small percentage to the overall variation of wages and so are not very important for understanding overall levels of wage disparity. Specifically, in our preferred specification area effects explain less than 1% of overall wage variation. This share has remained roughly constant over the period 1998- 2008.

Keywords: wage; disparities; labour (search for similar items in EconPapers)
JEL-codes: J31 R11 (search for similar items in EconPapers)
Date: 2010-10
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Working Paper: Wage disparities in Britain: people or place? (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:sercdp:0060

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