Manufacturing employment change, output demand, and labor productivity in the regions of Britain

This article presents an analysis of manufacturing employment change in the regions of Britain between 1987 and 1994 achieved through the implementati on of a labor demand shift-share model, it develops and estimates a model t hat 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 quantity and compare the employment consequences of regio n-specific change in industrial output, wage rates, the price of capital, a nd the level of technology. The authors draw implications from these result s 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 produ ctivity change in British manufacturing industries.