The Assessment: Inequality
This paper looks at the extent of personal income inequality in the UK, shows how it has widened and how various groups in the population have fared relative to one another. It compares the income distribution with the distribution of spending, which has grown unequal less quickly. Wages are the most important component of incomes - they grew more unequal very quickly over the 1980s. Finally, various measures of poverty are considered, especially in the context of income dynamics and movements in and out of poverty. We show how sensitive is the measurement of poverty to the line chosen. Copyright 1996 by Oxford University Press.
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