Abstract
This article presents an analysis of manufacturing employment change in the regions of Britain between 1987 and 1994 achieved through the implementation of a labor demand shift-share model. It develops and estimates a model that is capable of determining the parameters of a labor demand function in the absence of capital data. The principal focus is on the regional results generated, which quantify and compare the employment consequences of region-specific change in industrial output, wage rates, the price of capital, and the level of technology. The authors draw implications from these results for regional manufacturing output and labor productivity performance. The article demonstrates that output, price, and technology effects have been instrumental in creating regional differences in employment and labor productivity change in British manufacturing industries.
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