REVIVING THE VALLEYS OF SOUTH WALES - CASE-STUDY EVIDENCE OF A LINK WITH LOW PAY

This commentary presents case-study evidence on aspects of the inciden ce of low pay in the European region of Wales. The interesting finding is that it appears to be firms relocating to Wales from elsewhere in the UK who pay lower wages for the same work. This has important impli cations for the perpetuation of low pay in subregions of Wales, and we find the potential for a mismatch in the employment-creation objectiv es of the current Welsh Development Agency (WDA). In addition, we sugg est that the new Welsh assembly should play a vital role in ensuring t hat necessary higher-level employment forms part of future economic de velopment. been falling behind the UK in terms of average weekly earni ngs, for both males and females; the 1996 figures being only 87 percen t of the UK figure (New Earnings Survey, 1996). Even in manufacturing, where the bulk of the new investment has been concentrated, average w eekly earnings have fallen from 108.2 percent of the UK average in 198 3, to 99.4 percent in 1990 (Hill and Roberts, 1993). Welsh Economic Re view (1996) uses Eurostat data to show that GDP per head in Wales is j ust 84 percent of the EU average, while it is 99 percent for the UK as a whole. This puts Wales on a par with other peripheral areas of the EU such as Ireland and parts of Spain and Italy.