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The Strathprints institutional repository is a digital archive of University of Strathclyde's Open Access research outputs. Strathprints provides access to thousands of Open Access research papers by University of Strathclyde researchers, including by researchers from the Department of Computer & Information Sciences involved in mathematically structured programming, similarity and metric search, computer security, software systems, combinatronics and digital health.

The Department also includes the iSchool Research Group, which performs leading research into socio-technical phenomena and topics such as information retrieval and information seeking behaviour.

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Globalisation and wage differentials : a spatial analysis

Fingleton, B. and Baddeley, M. C. (2011) Globalisation and wage differentials : a spatial analysis. Manchester School, 79 (5). pp. 1018-1034. ISSN 1463-6786

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Abstract

Fujita, Krugman and Venables (FKV) develop a model in which international wage differentials encourage industrial mobility. We argue that globalization has another important dimension. Shocks may originate in a single country but, with modern transportation and telecommunications media, shocks spread quickly and with multiple shocks complex spillovers will be generated. We assess these forces in an analysis of international wage convergence, identifying a non-linear relationship and showing that not all countries converge. Given that the FKV model omits many of the causes of non-convergence, our evidence further demonstrates that the FKV model could usefully be extended.