This paper investigates wage interactions between 3-digit manufacturing ind
ustries. Spillover effects in wage equations are modelled using two variant
s of 'contiguity matrices' defining 'adjacent' industries and a matrix of w
orker movements between industries. Not only are industry spillover effects
important for the wages of both manuals/non-manuals and skilled/unskilled
workers taken separately, but significant spillover effects are also eviden
t between these two pairs of occupational sub-groups.