Wage spillovers, inter-regional effects and the impact of inward investment

Driffield, Nigel L. and Taylor, Karl (2006). Wage spillovers, inter-regional effects and the impact of inward investment. Spatial economic analysis, 1 (2), pp. 187-205.

Abstract

This paper evaluates the extent of inter-industry and inter-regional wage spillovers across the UK. An extensive body of literature exists suggesting that wages elsewhere affect wage determination and levels of satisfaction, but this paper extends the analysis of wage determination to examine the effects of inward investment in the process. Thus far the specific effect of foreign wages on domestic wage determination has not been evaluated. We employ industry- and regional-level panel data for the UK, and contrast results from alternative approaches to space-time modelling. Each supports the notion that such wage spillovers do occur, though assumptions made concerning the modelling of spatial interaction are important. Further, such wage spillovers are more widespread for skilled than for unskilled workers and also lower in areas of high unemployment. © 2006 Regional Studies Association.

Publication DOI: https://doi.org/10.1080/17421770601009825
Divisions: Aston Business School > Economics, Finance & Entrepreneurship
Aston Business School > Aston India Foundation for Applied Research
Additional Information: This is a preprint of an article whose final and definitive form has been published in the Spatial Economic Analysis © 2006 Regional Studies Association; Spatial Economic Analysis is available online at: http://www.tandfonline.com/10.1080/17421770601009825
Uncontrolled Keywords: alternative wage,regional spillovers,wage determination,Economics, Econometrics and Finance(all),Geography, Planning and Development,Earth and Planetary Sciences (miscellaneous),Statistics, Probability and Uncertainty
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
http://www.tand ... 421770601009825 (Publisher URL)
Published Date: 2006-11
Authors: Driffield, Nigel L.
Taylor, Karl

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