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Poles Apart

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  • Paul Gregg
  • Kirstine Hansen
  • Jonathan Wadsworth

Abstract

Analysis of labour market performance using individual level data can reach radically different conclusions to those provided by a household-based analysis, using the same source of information. In Britain and other OECD countries the number of households without access to earned income has grown despite rising employment rates. Built around a comparison of the actual jobless rate in households with that which would occur if work were randomly distributed, the authors show that work is becoming increasingly polarised in many countries. Changing household structure can only account for a minority of the rise in workless households, so that labour market failure is the dominant explanation. Polarisation of work will have important welfare and budgetary consequences for any country.

Suggested Citation

  • Paul Gregg & Kirstine Hansen & Jonathan Wadsworth, 2000. "Poles Apart," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 1(2), pages 55-72, April.
  • Handle: RePEc:wej:wldecn:15
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    Cited by:

    1. Brendan M. Walsh, 2002. "When unemployment disappears : Ireland in the 1990s," Working Papers 200229, School of Economics, University College Dublin.
    2. Brendan Walsh, 2003. "When Unemployment Disappears: Ireland in the 1990s," CESifo Working Paper Series 856, CESifo Group Munich.

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