This paper discusses the determination of regional earnings and unemployment in the ten regions of Great Britain between 1972 and 1995, paying particular attention to their joint determination and to the influence of the housing market.

When comparing, say, the welfare derived from income by a family that is comprised of two adults and three children to that of a single adult, it is necessary to take into consideration the relative needs of the respective households. The most common means by which applied studies in economics...