Wage disparities in Britain: people or place?

Stephen Gibbons, Henry Overman and Panu Pelkonen

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper investigates wage disparities across sub-national labour markets in Britain using anewly available microdata set. The findings show that wage disparity across areas is verypersistent over time. While area effects play a role in this wage disparity, most of it is due toindividual characteristics (sorting). Area effects contribute a very small percentage to theoverall variation of wages and so are not very important for understanding overall levels ofwage disparity. Specifically, in our preferred specification area effects explain less than 1of 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)
Pages: 48 pages
Date: 2010-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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http://eprints.lse.ac.uk/30845/ Open access version. (application/pdf)

Related works:
Working Paper: Wage Disparities in Britain: People or Place? (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:30845

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