Regional earnings inequality in Great Britain: Evidence from fixed-effects regressions

Heather Dickey*

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

Earnings inequality in Great Britain has increased substantially over the last two decades at both the national and regional levels. This paper examines the determinants of regional hourly earnings over the period 1976-95 by estimating regional fixed-effects earnings equations. Using panel data from the New Earnings Survey, individual-specific heterogeneity is controlled for, and superior estimates of the factors affecting regional earnings are obtained. Increasing returns to skill, increasing industrial differentials, and increasing premiums for older workers are found to have contributed to increasing regional earnings inequality, and consequently rising earnings inequality at the national level.

Original languageEnglish
Pages (from-to)763-787
Number of pages25
JournalLabour
Volume21
Issue number4-5
DOIs
Publication statusPublished - 01 Dec 2007
Externally publishedYes

ASJC Scopus subject areas

  • Demography
  • Geography, Planning and Development

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