In this paper a New Economic Geography type wage equation is estimated for the EU-25. The determinants of manufacturing wages are shown to be sector-specific and the role of geography is limited. As a consequence, we show that the improvement of the EU's internal market and the evolution of...

Using a centre-two periphery new economic geography model we study the location and real wage effects of the EU’s Eastern enlargement on current and future EU member countries under pure trade integration and with migration of skilled labour. The quality of final and intermediate products...