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Accounting for changes in income inequality: decomposition analyses for Great Britain, 1968-2009

  • Brewer, Mike
  • Wren-Lewis, Liam

We analyse income inequality in Great Britain over the period 1968-2009 in order to understand why income inequality rose very rapidly over the period 1978-91 and then stopped rising. We find that earnings inequality has risen fairly steadily since 1978, but other factors that caused inequality to rise in 1978-91 have since reversed. Inequality in investment and pension income has fallen since 1991, as has inequality between those with and without employment. Furthermore, certain household types – notably the elderly and those with young children – which had relatively low incomes in 1978-91 have seen their incomes converge with others.

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File URL: https://www.iser.essex.ac.uk/research/publications/working-papers/iser/2012-17.pdf
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Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2012-17.

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Date of creation: 29 Aug 2012
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Publication status: published
Handle: RePEc:ese:iserwp:2012-17
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