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Inactivity Among Prime Age Men in the UK

Author

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  • Giulia Faggio
  • Stephen Nickell

Abstract

Inactivity rates among prime-age men in the UK have risen by at least five times since the early 1970s whereas unemployment rates are much the same. Furthermore, inactivity is strongly concentrated among the unskilled and those suffering from a limiting long-term illness or disability. In our analysis of inactivity rates by region and age group we find that male inactivity responds negatively to variations in the wages of low level occupations and positively to fluctuations in incapacity benefit.

Suggested Citation

  • Giulia Faggio & Stephen Nickell, 2005. "Inactivity Among Prime Age Men in the UK," CEP Discussion Papers dp0673, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp0673
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    References listed on IDEAS

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    1. Nickell, Stephen & Layard, Richard, 1999. "Labor market institutions and economic performance," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084 Elsevier.
    2. Stephen Nickell & Patricia Jones & Glenda Quintini, 2002. "A Picture of Job Insecurity Facing British Men," Economic Journal, Royal Economic Society, vol. 112(476), pages 1-27, January.
    3. Jonathan Gruber, 2000. "Disability Insurance Benefits and Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1162-1183, December.
    4. Eli Bekman & John Bound & Stephen Machin, 1998. "Implications of Skill-Biased Technological Change: International Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1245-1279.
    5. Brian Bell & James Smith, 2004. "Health, disability insurance and labour force participation," Bank of England working papers 218, Bank of England.
    6. Desjonqueres, Thibaut & Machin, Stephen & Van Reenen, John, 1999. " Another Nail in the Coffin? Or Can the Trade Based Explanation of Changing Skill Structures Be Resurrected?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(4), pages 533-554, December.
    7. Nickell, Stephen & Bell, Brian, 1995. "The Collapse in Demand for the Unskilled and Unemployment across the OECD," Oxford Review of Economic Policy, Oxford University Press, vol. 11(1), pages 40-62, Spring.
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    Citations

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    Cited by:

    1. Christine Erhel & Mathilde Guergoat-Larivière, 2013. "La mobilité de la main-d'œuvre en Europe. Le rôle des caractéristiques individuelles et de l'hétérogénéité entre pays," Revue économique, Presses de Sciences-Po, vol. 64(2), pages 309-343.
    2. Lucie Schmidt, 2012. "The Supplemental Security Income Program and welfare reform," Public Policy Discussion Paper 12-3, Federal Reserve Bank of Boston.
    3. J. Shackleton, 2007. "Britain’s Labor Market Under the Blair Governments," Journal of Labor Research, Springer, vol. 28(3), pages 454-476, July.
    4. Whittaker, W & Sutton, M, 2010. "Mental health, work incapacity and State transfers: an analysis of the British Household Panel Survey," Health, Econometrics and Data Group (HEDG) Working Papers 10/21, HEDG, c/o Department of Economics, University of York.

    More about this item

    Keywords

    inactivity; disability;

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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