This paper shows that both relative wages and industry structure vary considerably across regions of the United Kingdom. In accordance with the neoclassical model of trade, regions abundant in a factor (i) exhibit lower relative prices of that factor than regions scarce in the factor, and (ii) tend to specialize in a mix of industries intensive in the use of the factor. We show that this specialization leads UK regions to be asymmetrically exposed to external macroeconomic or international trade shocks. © 2008 Blackwell Publishing Ltd and the Department of Economics, University of Oxford.
CITATION STYLE
Bernard, A. B., Redding, S. J., Schott, P. K., & Simpson, H. (2008). Relative wage variation and industry location in the United Kingdom. Oxford Bulletin of Economics and Statistics, 70(4), 431–459. https://doi.org/10.1111/j.1468-0084.2008.00510.x
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