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MANUFACTURING WAGES IN THE ENLARGED EU: THE ROLE OF NEIGHBOUR‐COUNTRY EFFECTS*
Author(s) -
MARQUES HELENA,
METCALF HUGH
Publication year - 2009
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/j.1467-9957.2008.02087.x
Subject(s) - wage , economics , manufacturing sector , eu countries , economic geography , european union , labour economics , international economics
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.