TY - JOUR
T1 - Wage convergence across European regions
T2 - Do international borders matter?
AU - Naz, Amber
AU - Ahmad, Nisar
AU - Naveed, Amjad
N1 - Publisher Copyright:
© 2017-Center for Economic Integration, Sejong Institution, Sejong University, All Rights Reserved.
PY - 2017/3
Y1 - 2017/3
N2 - This study focuses on wage convergence among the member states of the European Union by addressing three important questions. First, is there average wage convergence in European Union regions? Second, if there is wage convergence, are regional wage levels converging to a single, steady state level (unconditional convergence) or to their own steady state level (conditional convergence)? Third, do international borders matter for average wage convergence? By using a panel data set covering 203 Nomenclature of Territorial Units for Statistics-2 level regions from 1996 to 2006, the present study finds wage convergence for internal regions (regions within the same country) but no evidence of convergence for border regions (neighboring regions across international borders). These results imply that wage convergence is somehow restricted by international borders. These results are robust with both parametric and non-parametric approaches of testing convergence.
AB - This study focuses on wage convergence among the member states of the European Union by addressing three important questions. First, is there average wage convergence in European Union regions? Second, if there is wage convergence, are regional wage levels converging to a single, steady state level (unconditional convergence) or to their own steady state level (conditional convergence)? Third, do international borders matter for average wage convergence? By using a panel data set covering 203 Nomenclature of Territorial Units for Statistics-2 level regions from 1996 to 2006, the present study finds wage convergence for internal regions (regions within the same country) but no evidence of convergence for border regions (neighboring regions across international borders). These results imply that wage convergence is somehow restricted by international borders. These results are robust with both parametric and non-parametric approaches of testing convergence.
KW - Average wage
KW - Border regions
KW - Convergence
KW - Factor mobility
KW - Panel unit root test
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U2 - 10.11130/jei.2017.32.1.35
DO - 10.11130/jei.2017.32.1.35
M3 - Article
AN - SCOPUS:85014781737
SN - 1225-651X
VL - 32
SP - 35
EP - 64
JO - Journal of Economic Integration
JF - Journal of Economic Integration
IS - 1
ER -