British regions display persistent differences in both earnings and unemployment rates. A number of studies have found that in general, regions that have high unemployment tend to have low wages. This runs contrary to a compensating differentials argument that high wages should compensate for...

The Welsh economy has undergone rapid structural change in recent years. This paper uses data from the New Earnings Survey to examine how earnings in Wales changed relative to those of Great Britain between 1975 and 1994. There are five main findings. First, earnings of workers in Wales have...