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Earnings convergence in UK counties: a distribution dynamics approach

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  • Paul Bishop
  • Peter Gripaios

Abstract

This study applies a distribution dynamics approach to examining the evolution of average earnings of UK counties. An analysis of both transition probability matrices and stochastic kernels suggests considerable persistence in the overall distribution rather than economic convergence. However, there is evidence of a large number of counties congregating at the lower end of the distribution reflecting some downward mobility from the middle. Spatial effects are also important with counties in the South East appearing to gravitate towards the upper end of the distribution. The analysis reveals a more complex pattern of dynamics than is typically apparent from β regression approaches.

Suggested Citation

  • Paul Bishop & Peter Gripaios, 2006. "Earnings convergence in UK counties: a distribution dynamics approach," Applied Economics Letters, Taylor & Francis Journals, vol. 13(1), pages 29-33.
    • Handle: RePEc:taf:apeclt:v:13:y:2006:i:1:p:29-33
    DOI: 10.1080/13504850500188588
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    9. Paul Bishop & Peter Gripaios, 2004. "Earnings biases and convergence in the UK: a county level analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 11(1), pages 33-37.
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    Cited by:

    1. Cheong, Tsun Se & Wu, Yanrui, 2013. "Regional disparity, transitional dynamics and convergence in China," Journal of Asian Economics, Elsevier, vol. 29(C), pages 1-14.

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