Data analysis done through the use of the unified framework adds a more real sense of magnitude to the problem. Wage disparities can be observed based on the three requirements. This empirical style analysis was conducted on a data set of French workers. The authors have applied regression on the individual wages of workers, the worker fixed-effect; an area based fixed effect and the industry fixed-effect. The regression applied on skills however is not dependent on the locality. The first state in this regression therefore allowed the researchers to view the effects of skills on wages and then the productivity differences across area, industry was noted. Almost a million observations were collected between the years of 1976 and 1998. Worker fixed effects; industry fixed effects and worker characteristics or revealed that individual skills play a huge role in income disparities created among workers. Based on location it was noted that there are differences in interactions. Region based interaction effects were noted. So this was more variable and authors have not concluded on this leaving it for a case to case interpretation. On the other hand Combes et al (2005) were able to show that endowments play a very minor role in the disparity.
Columbe (1997) discusses how the regional disparities created because of major policy problems in Canada led to problems and further policy making to address the same. Regional development policies have always been at the core of Canadian Government’s development agenda. However, despite the inter-regional distribution agencies it can be seen that the disparity problem still exists. Columbe (1997) conduct an empirical analysis of the regional disparities. The concept of convergence and economic policies are given significance in the discussions
An economic model is used in the study where the per capita production statistics are collected for Canada and the US states that border it. In this economic model the variables of 1) the dispersion of productivity, 2) the dispersion of employment rates and 3) dispersion of the participation rate are decomposed to reveal that the convergence of human and physical capital was what leads to productivity convergence.