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Open Access research with a European policy impact...

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 Strathclyde researchers, including by researchers from the European Policies Research Centre (EPRC).

EPRC is a leading institute in Europe for comparative research on public policy, with a particular focus on regional development policies. Spanning 30 European countries, EPRC research programmes have a strong emphasis on applied research and knowledge exchange, including the provision of policy advice to EU institutions and national and sub-national government authorities throughout Europe.

Explore research outputs by the European Policies Research Centre...

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.