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Why did Britain’s households get richer? Decomposing UK household income growth between 1968 and 2008–09

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  • Brewer, Mike
  • Wren-Lewis, Liam

Abstract

Average real UK household income has almost doubled over the past forty years. With four decades of micro-data on household incomes, and relatively simple decomposition methods, we document the contribution to this growth in the mean net household income of working-age households from different income sources, and break down further changes in employment income by household member and into separate participation, hours and hourly wage effects. We also perform such analyses for the mean income of the richest working-age households, and among a group defined by having a low household income but a strong connection to the labour market.

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Bibliographic Info

Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2012-08.

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Date of creation: 31 Mar 2012
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Publication status: published
Handle: RePEc:ese:iserwp:2012-08

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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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Web page: https://www.iser.essex.ac.uk/
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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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Web: https://www.iser.essex.ac.uk/publications/

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  1. Paul Gregg & Jonathan Wadsworth, 2008. "Two sides to every story: measuring polarization and inequality in the distribution of work," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(4), pages 857-875.
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