IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v40y2003i7p1207-1222.html

Low Pay and Income in Urban and Rural Areas: Evidence from the British Household Panel Survey

Author

Listed:
  • Alana Gilbert

    (Macaulay Institute, Craigiebuckler, Aberdeen, AB15 8QH, UK. a.gilbert@ macaulay.ac.uk)

  • Euan Phimister

    (Department of Economics and the Arkleton Centre for Rural Development Research, University of Aberdeen, Aberdeen, AB24 3QY, UK. Fax: 01224 272 181. e.phimister@abdn.ac.uk)

  • Ioannis Theodossiou

    (Department of Economics and the Centre for European Labour Market Research, University of Aberdeen, Aberdeen, AB24 3QY, UK. Fax: 01224 272 181. theod@abdn.ac.uk)

Abstract

This paper examines the extent of urban-rural differences in low pay and the link between low pay and low incomes using data on urban and rural residents from the British Household Panel Survey for 1991-98. The results suggest that, overall, urban wages were significantly less than accessible rural but significantly more than remote rural wages even after adjustments were made for differences in observed characteristics. A lower percentage of urban workers who experienced low pay were also resident in low-income households. Lower urban in-employment and in-self-employment poverty were found relative to poor remote rural households even after differences in the characteristics across the different samples were controlled for.

Suggested Citation

  • Alana Gilbert & Euan Phimister & Ioannis Theodossiou, 2003. "Low Pay and Income in Urban and Rural Areas: Evidence from the British Household Panel Survey," Urban Studies, Urban Studies Journal Limited, vol. 40(7), pages 1207-1222, June.
    • Handle: RePEc:sae:urbstu:v:40:y:2003:i:7:p:1207-1222
    DOI: 10.1080/0042098032000084569
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/0042098032000084569
    Download Restriction: no
    File URL: https://libkey.io/10.1080/0042098032000084569?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David L. Barkley, 1995. "The Economics of Change in Rural America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(5), pages 1252-1258.
    2. Wheeler, Christopher H, 2001. "Search, Sorting, and Urban Agglomeration," Journal of Labor Economics, University of Chicago Press, vol. 19(4), pages 879-899, October.
    3. Wheaton, William C. & Lewis, Mark J., 2002. "Urban Wages and Labor Market Agglomeration," Journal of Urban Economics, Elsevier, vol. 51(3), pages 542-562, May.
    4. Gary S. Becker & Kevin M. Murphy, 1994. "The Division of Labor, Coordination Costs, and Knowledge," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 299-322, National Bureau of Economic Research, Inc.
    5. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-342, April.
    6. Nick Bailey & Ivan Turok, 2000. "Adjustment to Job Loss in Britain's Major Cities," Regional Studies, Taylor & Francis Journals, vol. 34(7), pages 631-653, October.
    7. Sloane, P J & Theodossiou, I, 1996. "Earnings Mobility, Family Income and Low Pay," Economic Journal, Royal Economic Society, vol. 106(436), pages 657-666, May.
    8. John Strait, 2001. "The Disparate Impact of Metropolitan Economic Change: The Growth of Extreme Poverty Neighborhoods, 1970–1990," Economic Geography, Taylor & Francis Journals, vol. 77(3), pages 272-305, July.
    9. Ivan Turok, 1999. "Urban Labour Markets: The Causes and Consequence of Change," Urban Studies, Urban Studies Journal Limited, vol. 36(5-6), pages 893-915, May.
    10. Metcalf, David, 1999. "The Low Pay Commission and the National Minimum Wage," Economic Journal, Royal Economic Society, vol. 109(453), pages 46-66, February.
    11. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    12. repec:bla:obuest:v:60:y:1998:i:4:p:509-28:a is not listed on IDEAS
    13. Brian D. Bell & Michael K. Pitt, 1998. "Trade Union Decline and the Distribution of Wages in the UK: Evidence from Kernel Density Estimation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(4), pages 509-528, November.
    14. Euan Phimister & Richard Upward & Esperanza Vera-Toscano, 2000. "The Dynamics of Low Income in Rural Areas," Regional Studies, Taylor & Francis Journals, vol. 34(5), pages 407-417.
    15. Jill L. Findeis & Leif Jensen, 1998. "Employment Opportunities in Rural Areas: Implications for Poverty in a Changing Policy Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1000-1007.
    16. Machin, Stephen & Manning, Alan, 1996. "Employment and the Introduction of a Minimum Wage in Britain," Economic Journal, Royal Economic Society, vol. 106(436), pages 667-676, May.
    17. Bell, Brian D & Pitt, Michael K, 1998. "Trade Union Decline and the Distribution of Wages in the UK: Evidence from Kernel Density Estimation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(4), pages 509-528, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Euan Phimister & Ioannis Theodossiou & Richard Upward, 2006. "Is it Easier to Escape from Low Pay in Urban Areas? Evidence from the United Kingdom," Environment and Planning A, , vol. 38(4), pages 693-710, April.
    2. James Richards & Kate Sang, 2019. "The intersection of disability and in-work poverty in an advanced industrial nation: The lived experience of multiple disadvantage in a post-financial crisis UK," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 40(3), pages 636-659, August.
    3. Yuheng Li & Hans Westlund & Göran Cars, 2010. "Future urban‐rural relationship in China: comparison in a global context," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 2(4), pages 396-411, November.
    4. Melanie K. Jones, 2004. "Rural Labour Markets: The Welsh Example," Local Economy, London South Bank University, vol. 19(3), pages 226-248, August.
    5. Emma Hollywood & Ronald W. Mcquaid, 2007. "Employers' Responses to Demographic Changes in Rural Labour Markets: The Case of Dumfries and Galloway," Local Economy, London South Bank University, vol. 22(2), pages 148-162, May.
    6. Phimister, Euan & Theodossiou, Ioannis & Upward, Richard, 2004. "Is It Easier To Escape From Low Pay In Urban Areas? Evidence From The Uk," Discussion Papers 31790, University of Aberdeen Business School, Centre for European Labour Market Research (CELMR).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Phimister, Euan & Theodossiou, Ioannis & Upward, Richard, 2004. "Is It Easier To Escape From Low Pay In Urban Areas? Evidence From The Uk," Discussion Papers 31790, University of Aberdeen Business School, Centre for European Labour Market Research (CELMR).
    2. Diego Puga, 2010. "The Magnitude And Causes Of Agglomeration Economies," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 203-219, February.
    3. Rosenthal, Stuart S. & Strange, William C., 2008. "The attenuation of human capital spillovers," Journal of Urban Economics, Elsevier, vol. 64(2), pages 373-389, September.
    4. Phimister, Euan, 2005. "Urban effects on participation and wages: Are there gender differences?," Journal of Urban Economics, Elsevier, vol. 58(3), pages 513-536, November.
    5. Shihe Fu & Stephen L. Ross, 2013. "Wage Premia in Employment Clusters: How Important Is Worker Heterogeneity?," Journal of Labor Economics, University of Chicago Press, vol. 31(2), pages 271-304.
    6. Matthias Wrede, 2013. "Heterogeneous skills and homogeneous land: segmentation and agglomeration," Journal of Economic Geography, Oxford University Press, vol. 13(5), pages 767-798, September.
    7. repec:wyi:journl:002155 is not listed on IDEAS
    8. Gustavo A. García, 2019. "Agglomeration economies in the presence of an informal sector: the Colombian case," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(2), pages 355-388.
    9. Daniel Heuermann & Benedikt Halfdanarson & Jens Suedekum, 2010. "Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations," Urban Studies, Urban Studies Journal Limited, vol. 47(4), pages 749-767, April.
    10. Sukkoo Kim, 2006. "Division of Labor and the Rise of Cities: Evidence from U.S. Industrialization, 1850-1880," NBER Working Papers 12246, National Bureau of Economic Research, Inc.
    11. Theodore Papageorgiou, 2022. "Occupational Matching and Cities," American Economic Journal: Macroeconomics, American Economic Association, vol. 14(3), pages 82-132, July.
    12. William C. Strange, 2009. "Viewpoint: Agglomeration research in the age of disaggregation," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 1-27, February.
    13. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    14. Frank Neffke, 2017. "Coworker Complementarity," SPRU Working Paper Series 2017-05, SPRU - Science Policy Research Unit, University of Sussex Business School.
    15. Fu, Shihe, 2007. "Smart Cafe Cities: Testing human capital externalities in the Boston metropolitan area," Journal of Urban Economics, Elsevier, vol. 61(1), pages 86-111, January.
    16. Edyta Laszkiewicz, 2016. "Determinants Of Hourly Wages Inequality In Selected European Metropolises. The Results From The Multilevel Modelling," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(4), pages 853-869, December.
    17. Masayuki MORIKAWA, 2011. "Urban Density, Human Capital, and Productivity: An empirical analysis using wage data," Discussion papers 11060, Research Institute of Economy, Trade and Industry (RIETI).
    18. Elvery, Joel A., 2010. "City size and skill intensity," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 367-379, November.
    19. Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon, 2011. "The identification of agglomeration economies," Journal of Economic Geography, Oxford University Press, vol. 11(2), pages 253-266, March.
    20. Wang, Qiuyan & Findeis, Jill L., 2004. "Do Women Earn Less In Rural Areas? An Empirical Analysis Of The Female Rural-Urban Wage Differential," 2004 Annual meeting, August 1-4, Denver, CO 19982, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Penelope B. Prime & Donald Grimes & Mary Beth Walker, 2016. "Exploring Wage Determination by Education Level," Economic Development Quarterly, , vol. 30(3), pages 191-202, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:40:y:2003:i:7:p:1207-1222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.