THE IMPACT OF MIGRATION ON REGIONAL WAGE INEQUALITY: A SEMIPARAMETRIC APPROACH

Authors


  • Thanks are due to Dr. Barbara Eberth and three anonymous referees for comments and suggestions that have improved the paper. Responsibility for errors remains with the author.

ABSTRACT

According to economic theory, regional migration is a primary mechanism through which regional wage convergence is predicted to occur. However, this does not necessarily imply that regional migration has an equalizing effect on regional inequality. Despite considerable literatures on regional migration and regional wage inequality, little attention has focused on the relationship between the two. This paper investigates one of the primary mechanisms through which migration affects individual region's wage distributions. It adopts a semiparametric procedure to examine how the regional wage distributions in Great Britain have changed as a result of migration using British Household Panel Survey data for 1991–2007.

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