U.K. employment and self-employment income inequality are analyzed over 1979-94/95. Robust inequality decompositions reveal occupation to be a relatively important and hitherto neglected determinant of earnings inequality. In contrast, self-employment income inequality is harder to explain, although occupation is also the most important single factor in the mid-1990s. The paper also provides a novel implementation of a decomposition of changes in S. C. Kolm's inequality index. Copyright 1999 by The International Association for Research in Income and Wealth.
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