This work examines regional wage variation and industry location. The research finds evidence of significant differences in the relative wage of high- to low-skilled workers the 'skill premium' across British regions. The findings suggest that relative wages for high-skilled workers compared with low-skilled workers are one-third lower in the South-East of England, where high-skilled workers are relatively more abundant, than in Wales or Scotland. A central explanation for relative wage differences is that regions specialise in producing different goods dependent on their relative endowments of high- and low-skilled workers. The research finds evidence that this is true in Great Britain the greater the difference in relative wages between two regions, the less similarity there is in the range of goods they produce.