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Wage Inequality Since 1975

In: The Labour Market Under New Labour

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  • Stephen Machin

Abstract

Wage inequality has risen significantly in the UK since the late 1970s. The most rapid widening of the gap between well paid and low paid workers occurred in the 1980s, but wage inequality probably continued to rise (at least for men), albeit at a much slower pace, through the 1990s. An important feature of rising wage inequality in the last quarter century was increased wage gaps between workers with high levels of education as compared to those with low education levels. Educational wage differentials rose at the same time as the education levels of the workforce rose suggesting that the relative demand for more educated workers increased. There is some preliminary evidence that wage differentials by education may have stopped rising at the end of the 1990s and start of the 2000s, which is consistent with the very rapid supply increases that occurred with the expansion of the higher education system.

Suggested Citation

  • Stephen Machin, 2003. "Wage Inequality Since 1975," Palgrave Macmillan Books, in: Richard Dickens & Paul Gregg & Jonathan Wadsworth (ed.), The Labour Market Under New Labour, chapter 12, pages 191-200, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-59845-4_13
    DOI: 10.1057/9780230598454_13
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    Citations

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    Cited by:

    1. Andreas Georgiadis & Alan Manning, 2012. "Spend it like Beckham? Inequality and redistribution in the UK, 1983–2004," Public Choice, Springer, vol. 151(3), pages 537-563, June.
    2. Paul Gregg & Maria Gutiérrez‐Domènech & Jane Waldfogel, 2007. "The Employment of Married Mothers in Great Britain, 1974–2000," Economica, London School of Economics and Political Science, vol. 74(296), pages 842-864, November.
    3. Stephen Nickell & Jumana Saleheen, 2008. "The impact of immigration on occupational wages: evidence from Britain," Working Papers 08-6, Federal Reserve Bank of Boston.
    4. Jo Blanden & Stephen Machin, 2013. "Educational Inequality and The Expansion of UK Higher Education," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(5), pages 578-596, November.
    5. Rod Falvey & David Greenaway & Joana Silva, 2018. "International competition, returns to skill and labour market adjustment," The World Economy, Wiley Blackwell, vol. 41(4), pages 1000-1024, April.
    6. David McKenzie & Pilar Garcia Martinez & L. Alan Winters, 2008. "Who is Coming from Vanuatu to New Zealand under the New Recognised Seasonal Employer (RSE) Program?," Working Papers in Economics 08/09, University of Waikato.
    7. Cinzia Rienzo, 2017. "Real wages, wage inequality and the regional cost-of-living in the UK," Empirical Economics, Springer, vol. 52(4), pages 1309-1335, June.
    8. Geoff Mason, 2014. "Skills and training for a more innovation-intensive economy," National Institute of Economic and Social Research (NIESR) Discussion Papers 431, National Institute of Economic and Social Research.
    9. Stephen Nickell & Jumana Saleheen, 2017. "The impact of EU and Non-EU immigration on British wages," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-28, December.
    10. Sasiwimon Warunsiri Paweenawat & Lusi Liao, 2022. "Brain over Brawn: Job Polarization, Structural Change, and Skill Prices," PIER Discussion Papers 189, Puey Ungphakorn Institute for Economic Research.

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