The distribution of regional earnings in the UK

Utilizing a micro sample of 7317 individuals extracted from the General Household Survey 1973, we show that money earnings and real earnings vary considerably across British regions even when other factors such as education and industry mix are held constant. We also find that real earnings do not follow the pattern of money earnings; if anything, quite the reverse. Whereas monetary rewards are the greatest in the South East of England, real rewards are the greatest in the Midlands and the North East of England. Scottish regions, however, appear to fare the worst in both money and real terms.