| Abstract: | ABSTRACT: The aim of this paper is to present a measure of regional labour costs in manufacturing industry in the European Community in 1988. As raw data, derived from the Eurostat Labour Cost Survey, are strongly dependent on sectoral distribution of employment in each region, a method is presented, based on reweighting techniques and loglinear modelling, to eliminate the composition effect. As a result, a regular geographical pattern does emerge. The same type of technique is then applied to the evolution of regional labour costs between 1984 and 1988; some correlation does appear with regional unemployment levels in the United Kingdom and France, pointing the way towards further research. |
