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

Nigel L. Driffield; Karl Taylor

doi:10.1080/17421770601009825

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

Nigel L. Driffield^*
, Karl Taylor

^*Corresponding author for this work

Economics and International Business

Research output: Contribution to journal › Article › peer-review

19 Citations (Scopus)

43 Downloads (Pure)

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.

Original language	English
Pages (from-to)	187-205
Number of pages	19
Journal	Spatial economic analysis
Volume	1
Issue number	2
DOIs	https://doi.org/10.1080/17421770601009825
Publication status	Published - Nov 2006

Bibliographical note

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

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

alternative wage
regional spillovers
wage determination

Access to Document

10.1080/17421770601009825

Wage spillovers, inter-regional effects and the impact of inward investment
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.informaworld.com/openurl?genre=article&issn=1742-1780&volume=1&issue=1&spage=187
Accepted author manuscript, 192 KB

Cite this

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

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. {\textcopyright} 2006 Regional Studies Association.",

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N2 - 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.

AB - 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.

KW - alternative wage

KW - regional spillovers

KW - wage determination

UR - https://www.scopus.com/pages/publications/84876443817

UR - http://www.tandfonline.com/10.1080/17421770601009825

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DO - 10.1080/17421770601009825

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VL - 1

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JO - Spatial economic analysis

JF - Spatial economic analysis

IS - 2

ER -

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

Abstract

Bibliographical note

UN SDGs

Keywords

Access to Document

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