Earnings biases and convergence in the UK: a county level analysis

Abstract

Cameron and Muellbauer (Economic Journal, 110, pp. 412–19, 2000) have convincingly argued that problems in the methods used to compile UK Regional Accounts data have resulted in a misleading picture of regional differentials and σ convergence. This short paper extends their analysis to a wider range of measures of convergence and adopts a more disaggregated approach by analysing data at the county level. The results provide general support for their hypothesis and indicate that different measures of income can result in different conclusions concerning convergence. Thus, it is essential that future studies of convergence investigate the implications of using different measures of income where possible, rather than relying upon a single data source.

Acknowledgement

We are grateful to John Muellbauer for comments on an earlier version of this note.