摘要：The level and growth of wage rates in an economy is an important indicator of development since wage rates are a major part of personal income, which drives local economic activity. Furthermore, since wage rates are part of unit labour costs, their growth determines the rate of inflation in a closed economy, given constant productivity and constant profit margins. On a regional leveL wage rates can also play a large raIe in the economy's development. For example, if wage rates are high in a region relative ta others, this may indicate relatively higher labour costs (if there are not significant productivity differences across regions) and therefore the region may not be as attractive a location for industry.! Indeed, the differential in wage rates may create a need for fiscal incentives to be offered by regional governments. In addition, a human capital approach ta interregional migration would suggest that regions with relatively high wage rates would tend to have net in-migration, implying relatively faster labour force growth and, consequently, a higher rate of potential growth.
