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The Evolution of Wages in the United Kingdom: Evidence from Micro Data

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  • Meghir, Costas
  • Whitehouse, Edward

Abstract

The authors use data on male employees from the U.K. Family Expenditure Survey for the years 1968-86 to investigate the behavior of wages over time and across cohorts. They find that differentials between manual workers and professional managerial ones are lower at labor-market entry for younger cohorts but increasing faster with age in the 1980s than in the past. The returns to experience appear to be very low in the United Kingdom, particularly for manual and clerical workers, although the improved education of younger workers may partly explain this. Finally, the authors show that individual wages in the United Kingdom are highly procyclical. Copyright 1996 by University of Chicago Press.

Suggested Citation

  • Meghir, Costas & Whitehouse, Edward, 1996. "The Evolution of Wages in the United Kingdom: Evidence from Micro Data," Journal of Labor Economics, University of Chicago Press, vol. 14(1), pages 1-25, January.
  • Handle: RePEc:ucp:jlabec:v:14:y:1996:i:1:p:1-25
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    References listed on IDEAS

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    1. Angrist, Joshua D., 1991. "Grouped-data estimation and testing in simple labor-supply models," Journal of Econometrics, Elsevier, vol. 47(2-3), pages 243-266, February.
    2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    3. Bils, Mark J, 1985. "Real Wages over the Business Cycle: Evidence from Panel Data," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 666-689, August.
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