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Manufacturing Wages In The Enlarged Eu: The Role Of Neighbour‐Country Effects

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  • HELENA MARQUES
  • HUGH METCALF

Abstract

In this paper a New Economic Geography type wage equation is estimated for the EU‐25. The determinants of manufacturing wages are shown to be sector‐specific and the role of geography is limited. As a consequence, we show that the improvement of the EU's internal market and the evolution of European geography are likely to favour larger EU members and challenge smaller ones.

Suggested Citation

  • Helena Marques & Hugh Metcalf, 2009. "Manufacturing Wages In The Enlarged Eu: The Role Of Neighbour‐Country Effects," Manchester School, University of Manchester, vol. 77(1), pages 65-81, January.
    • Handle: RePEc:bla:manchs:v:77:y:2009:i:1:p:65-81
    DOI: 10.1111/j.1467-9957.2008.02087.x
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    References listed on IDEAS

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    7. Anthony J. Venables, 1999. "The International Division of Industries: Clustering and Comparative Advantage in a Multi‐industry Model," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(4), pages 495-513, December.
    8. Vassilis Monastiriotis, 2002. "Human capital and wages: evidence for external effects from the UK regions," Applied Economics Letters, Taylor & Francis Journals, vol. 9(13), pages 843-846.
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    Cited by:

    1. Dusan Paredes, 2010. "The Role of Regional Price Index in New Economic Geography Models," Documentos de Trabajo en Economia y Ciencia Regional 07, Universidad Catolica del Norte, Chile, Department of Economics, revised Dec 2010.

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